- Paramount Skydance has launched syndication for a proposed US$7.5 billion senior secured term loan as part of a broader financing package for its acquisition of Warner Bros. Discovery
- The company said that the $7.5 billion incremental term B facility is subject to market and other conditions
- The company plans to use the proceeds, together with cash on hand and prior equity financing, to fund the Warner Bros. Discovery acquisition and to repay some of its existing debt
LOS ANGELES, California: Paramount Skydance has launched syndication for a proposed US$7.5 billion senior secured term loan as part of a broader financing package for its acquisition of Warner Bros. Discovery.
The company said that the $7.5 billion incremental term B facility is subject to market and other conditions.
Paramount also intends to raise approximately $44.4 billion in additional secured debt, in addition to the proposed term loan and previously announced financing.
The company plans to use the proceeds, together with cash on hand and prior equity financing, to fund the Warner Bros. Discovery acquisition and to repay some of its existing debt.
The combined company is expected to have about $80 billion in debt after the acquisition closes.
The financing plans follow Paramount’s settlement of litigation with a California-led group of states and the Writers Guild of America over its $110 billion acquisition of Warner Bros Discovery. The settlement cleared the final domestic hurdles for the deal.
As part of the settlement, Paramount agreed to increase U.S. film production and establish an editorial-independence board for CBS and CNN. The agreement avoided a forced sale of assets, including CNN and the companies’ film franchises.
