Warner Bros. Discovery Locks $15B Loan at 250bps Spread Before $110B Takeover
WBD•Warner Bros. Discovery expanded term loan to $15 billion and tightened pricing to 250 bps over benchmarks with a 99.5–99.75 cent original issue discount, down from 275–300 bps guidance. Loans repay $15 billion bridge facility ahead of a $110 billion takeover, as DOJ staff review antitrust concerns after meetings.
1. Loan Facility Expansion and Pricing
Warner Bros. Discovery expanded its term loan to $15 billion by increasing the dollar tranche to $12.5–$13.75 billion and the euro tranche to €1–2 billion, and tightened pricing to 250 basis points over benchmarks with a 99.5–99.75 cent original issue discount, improving from 275–300 bps guidance.
2. Bridge Loan Repayment and Merger Context
The proceeds are earmarked to fully repay a $15 billion bridge loan ahead of its planned $110 billion takeover by Paramount Skydance, positioning the company to secure long-term financing under new ownership.
3. DOJ Antitrust Review Developments
Paramount CEO David Ellison engaged with DOJ antitrust staff to address market concentration and content diversity concerns, garnering indications of receptivity from regulators while scrutiny continues from key policymakers.
4. Acquisition Debt Packages
A bank group led by JPMorgan is structuring approximately $50 billion of acquisition debt for the merger, including about $30 billion of investment-grade bonds, $12 billion of high-yield bonds and $7.5 billion of senior loans.
