Take-Two Interactive is selling $2.7 billion of its senior notes to help finance its pending acquisition of mobile publisher, Zynga.
The publisher, which owns major companies including Grand Theft Auto developer Rockstar Games, said the underwritten public offering will consist of $1.0 billion of its 3.300 percent senior notes due 2024, $600 million of its 3.550 percent senior notes due 2025, $600 million of its 3.700 percent senior notes due 2027 and $500 million of its 4.000 percent senior notes due 2032.
A portion of the net proceeds from the offering, together with cash on hand, will be used to fund the cash portion of the Zynga deal. Any remaining proceeds will be used for "general corporate purposes."
Take-Two agreed to buy Zynga at a valuation of $12.7 billion in January 2022 with a view to becoming a leader in the mobile space.
The deal will see Take-Two purchase all outstanding Zynga shares for a total value of $9.86 per share, comprising $3.50 in cash and $6.36 in shares of Take-Two common stock.