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By Natalie Wright
NEW YORK (Reuters) - Activision Blizzard Inc <ATVI.O> adjusted the structure on the $5 billion financing package backing the company's plan to spin itself off from Vivendi <VIV.PA> and buy back shares, sources told Thomson Reuters LPC.
Bank of America Merrill Lynch and JP Morgan lead the deal.
The company is now proposing a $2.5 billion, seven-year covenant-lite term loan B, versus $2.25 billion, previously. The company is also planning a $250 million revolving credit facility.
In addition, the company increased its planned eight-year note issuance by $500 million to $1.5 billion, and upsized its proposed 10-year note issuance by $250 million to $750 million. The company has canceled a $1 billion, seven-year note previously in market.
Price talk on the TLB is unchanged at LIB+275-300, with a 75bp Libor floor and a 99.5 original issue discount. The TLB will carry 101 soft call protection for six months.
Indicative pricing on the eight-year notes is 5.75-6 percent, while the 10-year notes are guided at 6.25-6.5 percent.
Activision plans to fund the purchase of 429 million of its shares from Vivendi with a combination of $1.2 billion in cash on hand and new debt, according to a company filing. The transaction is expected to close by the end of September. Activision is buying the shares back for $5.83 billion, or $13.60 per share.
Separately, Activision CEO Bobby Kotick and Co-Chairman Brian Kelly will purchase 172 million shares for $2.34 billion. After the transaction, Vivendi will no longer be the majority shareholder, but will retain a stake of 83 million shares, or approximately 12 percent.
Activision Blizzard Inc is a worldwide online, personal computer, video game console, handheld, and mobile game publisher.
(Editing By Jon Methven)