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Activision (ATVI) Prices Senior Notes, Rated Baa2 by Moody's

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Activision Blizzard, Inc. recently announced the pricing of senior unsecured notes aggregating $1.5 billion in a private offering. These bonds have been issued in two tranches of different amounts with varying coupon rates and maturity dates. The offering is expected to be closed on Sep 19, 2016.

The $650 million and $850 million senior notes have an annualized interest rate of 2.300% and 3.400%, respectively. The notes due to mature in 2021 and 2026 will be priced at a respective 99.878% and 99.614% of their principal amounts.

The company intends to use the net proceeds for the redemption of the $1.5 billion aggregate principal amount of its existing 5.625% senior notes that are due in 2021. Activision Blizzard will be repaying a redemption price of 104.219% along with the interest for the same.

Moody’s Investor Services – the credit rating agency of Moody’s Corporation (MCO - Free Report) – assigned a “Baa2” rating to the Notes that carry a stable outlook.

At the end of second-quarter 2016, Activision had $2.27 billion in cash and cash equivalents while its long-term debt stood at $4.98 billion.

ACTIVISION BLZD Price and Consensus

ACTIVISION BLZD Price and Consensus | ACTIVISION BLZD Quote

Currently, Activision has a Zacks Rank #2 (Buy). A couple of similarly-ranked stocks in the gaming space include Electronic Arts (EA - Free Report) and Take Two Interactive (TTWO - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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