Paramount seeks $7.5 billion debt raise to fund Warner Bros deal

Paramount Skydance has initiated a $7.5 billion senior secured term loan syndication as part of a comprehensive financing plan for its acquisition of Warner Bros Discovery. This move comes shortly after the company resolved litigation with a coalition of California state entities and the Writers Guild of America regarding its $110 billion deal for Warner Bros Discovery. The acquisition has the potential to transform the Hollywood landscape.

Paramount plans to issue the $7.5 billion incremental term B facility, contingent on market conditions and other factors. Additionally, the company aims to secure approximately $44.4 billion in supplementary secured debt, alongside the proposed term loan and previously announced financing arrangements. The funds raised will be utilized alongside existing cash reserves and prior equity investments to finance the Warner Bros Discovery purchase and to alleviate some of Paramount's current debt obligations. The combined entity is projected to carry around $80 billion in debt post-merger.

To facilitate the acquisition without facing forced asset sales, including CNN and its film franchises, Paramount has committed to augmenting domestic film production and establishing an editorial-independence board for CBS and CNN.