Paramount WBD Acquisition Financing
Paramount Plans $44.4 Billion Debt Sale to Fund Warner Bros. Acquisition
Anonymous
Paramount Skydance plans to raise about $44.4 billion through U.S. dollar- and euro-denominated senior secured notes to help finance its proposed acquisition of Warner Bros. Discovery and repay some existing debt. The company says it will combine any proceeds with cash on hand, previously arranged term loans and equity financing; the note sale is subject to market conditions and is not required for the acquisition to close. The offering is aimed at institutional and certain non-U.S. investors, and Paramount Skydance is providing pro forma financial information to illustrate the potential combined company.
Key Points
1
The proposed financing is structured as first- and second-lien notes, with the first-lien notes denominated in U.S. dollars and the second-lien notes offered in U.S. dollars and euros.
2
The terms of the debt sale were not yet final: its size, interest rates, note types and maturities could change, and the company said there was no assurance the sale or acquisition would close on the anticipated terms or timeline.
3
Paramount Skydance shares fell 0.6% in premarket trading after the offering announcement.
4
The unaudited pro forma information furnished to prospective investors combines historical financial data for Paramount Skydance, Warner Bros. Discovery and Skydance Media and reflects the acquisition and related transactions, including the Skydance and NAI transactions. It is illustrative, not compliant historical or forecast financial information.
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