Game firm Ubisoft sells $445M in bonds
MONTREUIL, France — Ubisoft Entertainment SA, the French video-game maker trying to fend off the advances of Vivendi SA, sold about $445 million of convertible bonds to help finance product development and pay for possible acquisitions.
The five-year bonds were sold to institutional investors in a private placement, the company said in a statement last week.
The length of the term suggests any conversion would occur well after Ubisoft’s current battle to remain independent — so the new stock wouldn’t be available for voting.
The added funding arms Ubisoft to move ahead with its business after a potential showdown with its largest investor this week. Ubisoft’s founding Guillemot family has added to their stake ahead of a Sept. 29 shareholder meeting to fend off any Vivendi attempt to gain board seats.
With the bond sale, Ubisoft is taking advantage of low interest rates, according to people familiar with the matter. There is no link between the money-raising and the battle with Paris-based Vivendi, said the people, who asked not be identified.
The sale “will significantly strengthen Ubisoft’s financial flexibility” to make investments, the company said. The proceeds will be used for general purposes, including possible acquisitions, share buybacks and debt refinancing, Ubisoft said.