Paramount Prepares $49 Billion Debt Sale to Fund $110 Billion Warner Bros. Merger

Bloomberg··US·Read original
4▲2 ▼0Impact / 5
Summary · why it matters

Paramount Skydance Corporation is preparing to launch a $49 billion debt sale to fund its $110 billion acquisition of Warner Bros. Discovery, after settling a series of lawsuits that had blocked the deal from closing, according to Bloomberg. Bank of America, Citigroup, and Apollo Global Management, the banks that underwrote the debt package earlier this year, are now contacting potential investors, with a formal launch expected within weeks. The financing is divided into about $30 billion of investment-grade bonds, $7.5 billion of investment-grade loans, and around $12 billion of second-lien bonds, drawing from a dollar and euro investor base wider than what leveraged buyouts typically attract. Regulators in nearly 70 jurisdictions have approved the merger, and the Federal Communications Commission has signed off on the financing. Paramount settled Monday with 12 state attorneys general and the Writers Guild of America, resolving an antitrust lawsuit led by California Attorney General Rob Bonta that had threatened to push the deal's resolution to mid-2027; the settlement requires Paramount to release a minimum of 30 films in cinemas annually in the first two years, rising to 32 per year over the three years after that, and to spend at least $1.5 billion above its 2025 domestic film production levels over five years. Under the merger agreement, Paramount must pay Warner Bros. Discovery shareholders roughly $7 million per day beginning October 1 for every day the transaction remains unclosed, and Paramount had targeted a closing date in the third quarter.

Impact on assets 5

Communication Services▲ · 2 stocks
Warner Bros Discovery Inc
WBD
▲ PositiveCapitalrelevance

Warner Bros. Discovery is the acquisition target, with regulatory approvals secured and closing expected after the financing.

Aging Population▲ · 1 stocks
Financials▲ · 1 stocks
Bank of America Corp
BAC
± MixedCapitalrelevance

Bank of America underwrote the debt package and is contacting potential investors for the $49B sale.

Digital Finance & Tokenization▲ · 1 stocks
Citigroup Inc.
C
± MixedCapitalrelevance

Citigroup underwrote the debt package and is contacting potential investors for the $49B sale.

Off-coverage companies 1

Bloomberg L.P.Private± Mixed
relevance

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