Paramount seeks $7.5 billion debt raise to fund Warner Bros deal
The company plans to use the proceeds to fund the Warner Bros. Discovery acquisition and repay existing debt, with the combined company expected to carry nearly $80 billion in debt.
- On Thursday, Paramount Skydance launched a syndication to raise $7.5 billion in senior secured loans to fund its $110 billion merger with Warner Bros. Discovery, following a legal settlement earlier this week that cleared final domestic hurdles.
- Paramount reached a settlement with 12 state attorneys general, including California's Rob Bonta, earlier this week to resolve antitrust litigation, committing to release at least 30 films annually and establish an editorial-independence board for CBS and CNN.
- Bank of America, Citigroup, and Apollo Global Management are leading the debt syndication as Paramount plans to raise approximately $44.4 billion of additional secured debt, bolstered by over $40 billion in equity financing backstopped by Larry Ellison and Middle Eastern sovereign wealth funds.
- Paramount CEO David Ellison expects the merger to close in about two weeks pending final judicial approval, while Morgan Stanley analysts project the combined entity will carry nearly $80 billion in net debt by year-end.
- The combined company inherits at least 39 theatrical releases through 2028 and aims for $6 billion in synergy savings, though staff remain concerned about potential inefficiencies and past theatrical failures affecting morale.
13 Articles
13 Articles
Paramount Plans to Raise Another $7.5 Billion in Debt for the Warner Bros. Merger
Paramount announced today that it has launched a syndication for a proposed senior secured incremental tranche of term “B” loans for $7.4 billion. In the announcement, Paramount also shared that it intends to raise approximately $44.4 billion of additional secured debt, in addition to previously announced financing. The money will be used for the $110 […]
Paramount seeks $7.5 billion debt raise to fund Warner Bros deal
Sept 24 (Reuters) - Paramount Skydance said on Thursday it has launched a syndication for a proposed $7.5 billion senior secured term loan, part of a broader financing package to fund its acquisition of Warner Bros Discovery. The loan launch comes da...
Paramount to Raise $7.5 Billion More in Debt to Fund Warner Bros. Deal
Paramount Skydance said Thursday it is launching a syndication to raise $7.5 billion through a proposed senior secured incremental tranche of term “B” loans. The David Ellison-led company it will use the funds toward its $111 billion Warner Bros. Discovery merger, and to pay down certain other debt. In total, Paramount said it now intends […]
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