Microsoft has announced the results of early participation in exchange offers and consent solicitations related to Activision Blizzard, a wholly-owned subsidiary. The exchange involves outstanding notes issued by Activision Blizzard for new notes issued by Microsoft and cash.
Microsoft’s Early Participation Results in Private Exchange Offers and Consent Solicitations
Microsoft Corporation recently announced the results of early participation in private exchange offers and consent solicitations in connection with its wholly-owned subsidiary, Activision Blizzard, Inc. This marks a significant move in the tech industry, especially for those keeping an eye on the financial aspects of these tech giants.
What’s New?
The tech giant offered to exchange any and all outstanding notes issued by Activision Blizzard for new notes issued by Microsoft and cash. This offer, along with consent solicitations to adopt proposed amendments to each of the corresponding indentures governing the existing Activision Blizzard notes, has seen significant engagement.
Major Updates
As of October 27, 2023, a considerable amount of each series of existing Activision Blizzard notes have been validly tendered and not validly withdrawn. The percentages of notes tendered range from 88.30% to 97.82% across five different series of notes.
“Activision Blizzard has received the requisite number of consents to adopt the Proposed Amendments with respect to each of the five outstanding series of Existing Activision Blizzard Notes that are subject to the Exchange Offers and Consent Solicitations.”
What’s Important to Know?
Activision Blizzard and the trustee for each outstanding series of existing Activision Blizzard notes are expected to execute and deliver supplemental indentures to amend the indentures governing the existing notes. This will become operational on the early settlement date, which is expected to be on November 6, 2023.
“Tendered Existing Activision Blizzard Notes may no longer be withdrawn.”
Eligible holders of existing Activision Blizzard notes will be eligible to receive the applicable consideration for each $1,000 principal amount of existing notes validly tendered at or prior to the early tender date.
This move by Microsoft is a clear indication of its strategic financial management and its continued commitment to growth and expansion in the tech industry.
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