00:00It's Benzinga, bringing Wall Street to Main Street.
00:02J.P. Morgan committed $20 billion to finance Electronic Arts' $55 billion Take Private,
00:07the largest debt package ever provided by a single bank in a leveraged buyout, according to Bloomberg.
00:11The record-setting commitment underscores Wall Street's effort to push back against the $1.7
00:15trillion private credit industry and reclaim its dominance in megatransactions. J.P. Morgan will
00:21syndicate the debt through high-yield bonds and leverage loans across multiple currencies.
00:25The deal also marks a turning point for private equity activity, which has slowed since the Fed began
00:29raising rates in 2022. Collateralized loan obligations which bundle risky loans into bonds
00:34are the main buyers of leveraged loans and are driving soaring demand for new debt deals.
00:39The EA buyout now stands as the largest leveraged buyout in history,
00:42surpassing Elon Musk's $44 billion Twitter takeover in 2022.
00:46For all things money, visit Benzinga.com.
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