Paramount Launches $50B Debt Sale for Warner Bros. Acquisition; Senators Voice Security Concerns
Paramount Skydance plans a $50 billion debt package for its Warner Bros. Discovery acquisition, including $30 billion of investment-grade bonds, $12 billion of high-yield notes and $7.5 billion of loans. Six Democratic senators signaled concern over foreign investments from Middle Eastern sovereign funds and Chinese firms, urging the FCC to scrutinize the $111 billion merger.
1. $50 Billion Debt Financing Package
Bank of America and Citigroup are structuring a $50 billion debt package to back Paramount Skydance's acquisition of Warner Bros. Discovery, with $30 billion of investment-grade bonds split into three- and 10-year tranches priced 2.5–2.75 percentage points above benchmarks, $12 billion of high-yield notes across five-, eight- and 10-year maturities, and $7.5 billion of loans at roughly 3 points over benchmarks, to be issued in US dollars and euros.
2. Regulatory and Geopolitical Concerns
A group of six Democratic senators raised alarms over proposed foreign investments by Middle Eastern sovereign wealth funds and Chinese firms in the $111 billion Paramount–Warner Bros. Discovery merger, warning that governments hostile to a free press could influence editorial decisions and urging the Federal Communications Commission to apply heightened scrutiny before approving these backers.