Electronic Arts Announces Public Offering, Proceeds Will Partially Be Used To Buyback Stock

Electronic Arts Inc. EA announced on Wednesday that it intends to offer senior notes in a public offering. Electronic Arts noted that it plans on using the net proceeds from the offering for general corporate purposes, including the payment of amounts due upon conversion, maturity or repurchase of its 0.75 percent Convertible Senior Notes due 2016. The company also added that it will use part of the proceeds to finance a new $500 million stock repurchase program which is contingent upon the launch of the senior notes offering. The new $500 million authorization buyback is incremental to an already existing 2-year $1 billion program which was announced in May and has approximately $599 million in authorization remaining. Shares of Electronic Arts were trading higher by 0.73 percent at $59.79 Wednesday afternoon.