Paramount Skydance prices $42 billion debt for Warner Bros deal

Paramount Skydance Corporation has announced plans to sell $42 billion in debt to finance its acquisition of Warner Bros. Discovery, Inc. The company will issue $30 billion in senior secured first lien notes and $11.4 billion in senior secured second lien notes. The first lien notes will consist of eight tranches maturing between 2028 and 2066, with interest rates ranging from 6.30% to 8.90%.

The second lien notes include four tranches maturing between 2031 and 2036, with interest rates between 7.00% and 9.125%. Additionally, the company has priced an incremental term B loan facility consisting of an $8.5 billion U.S. dollar-denominated tranche and a €850 million euro-denominated tranche, both maturing in 2033. The net proceeds from the note offerings will be used to finance the purchase price for the acquisition and repay existing debt.

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