Citigroup to Underwrite $50B Debt for $110B Paramount-Warner Bros Deal
C•Citigroup is partnering with Bank of America to underwrite $50 billion of debt financing Paramount Skydance’s $110 billion takeover of Warner Bros Discovery. Offerings include $30 billion of investment-grade bonds, $12 billion of junk bonds and $7.5 billion of loans, potentially lifting Citigroup’s underwriting fee revenue.
1. Deal Structure
Paramount Skydance’s $110 billion proposal to acquire Warner Bros Discovery is being backed by a $50 billion debt package. This package comprises roughly $30 billion of investment-grade bonds, $12 billion of high-yield bonds and $7.5 billion of syndicated loans.
2. Citigroup’s Underwriting Role
Citigroup, alongside Bank of America, has been tapped to underwrite the $50 billion financing alongside a JPMorgan-led group. Citigroup’s role involves structuring the bond tranches, marketing to institutional investors and coordinating syndication efforts.
3. Revenue Implications
Underwriting such large-scale debt offerings typically generates sizable fees for participating banks. Citigroup’s share of fee income from this deal could provide a meaningful boost to its investment banking revenues in the current quarter.
