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.
Related News
Interparfums Inc., linked to directors Jean Madar and Philippe Benacin, purchases EUR 767,506 in Inter Parfums SA stock
People Inc brand Travel + Leisure brings World’s Best Summit to international stage for first time
