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Paramount Skydance Launches $7.5 Billion Debt Raise for Warner Bros Discovery Acquisition
- •Paramount Skydance initiated a syndication for a proposed $7.5 billion senior secured term loan to fund its acquisition of Warner Bros Discovery.
- •The company plans to raise an additional $44.4 billion in secured debt as part of the financing package.
- •Proceeds from the new debt, cash on hand, and equity financing will fund the acquisition and repay existing debt.
- •The combined company is projected to have approximately $80 billion in debt post-transaction.
- •This financing move follows settlements with US states and the Writers Guild of America, removing legal hurdles for the deal.
Key Questions Answered
Paramount Skydance has launched a syndication for a proposed $7.5 billion senior secured term loan, known as an incremental Term B facility. This loan is part of a broader financing package to fund its proposed acquisition of Warner Bros Discovery.
Paramount settled litigation with a group of US states led by California and the Writers Guild of America regarding its proposed $110 billion transaction with Warner Bros Discovery. Initially, California and 11 other US states had filed a lawsuit in July to block the acquisition over competition concerns.
As part of the settlement, Paramount agreed to increase its film production in the United States and establish an editorial-independence board overseeing CBS and CNN. Additionally, Chief Executive Officer David Ellison provided assurances to the UK government regarding programming and news operations, which will become legally binding commitments.
