Paramount seeks $7.5 billion debt raise to fund Warner Bros deal
PSKY•Paramount Skydance launched syndication for a proposed $7.5 billion senior secured term loan to help fund its acquisition of Warner Bros Discovery. It also intends to raise about $44.4 billion in additional secured debt; the combined company is expected to have about $80 billion in debt after closing.
1. Proposed loan
Paramount Skydance launched syndication for a proposed $7.5 billion incremental term B facility, subject to market and other conditions. The company said it would use the proceeds, cash on hand and previously announced equity financing to fund the Warner Bros Discovery purchase and repay some existing debt.
2. Broader financing
Paramount also intends to raise about $44.4 billion in additional secured debt, on top of the proposed loan and previously announced financings. The combined company is expected to have about $80 billion in debt after the deal closes. Paramount agreed to increase U.S. film production and establish an editorial-independence board for CBS and CNN, avoiding a forced sale of assets including CNN and its film franchises.
