Paramount Skydance (PSKY.O) has successfully syndicated its bridge loan facility and secured permanent financing from a consortium of banks, a significant step towards its planned $111 billion acquisition of Warner Bros Discovery (WBD.O). Paramount Skydance, a prominent media and entertainment conglomerate, is engaged in content creation, distribution, and streaming services. Warner Bros Discovery is another global media and entertainment company known for its vast portfolio of film, television, and streaming content. This crucial financial milestone was disclosed in a Thursday filing with the US Securities and Exchange Commission.
The company announced its bridge facility supporting the Warner Bros deal was sold down to 18 banks, reducing debt commitments from $54 billion to $49 billion. Concurrently, Paramount secured permanent financing with the banking syndicate, providing $5 billion in senior term loan As and a new $5 billion revolving credit facility. A separate $3.5 billion credit facility was dropped. These substantial loans are backed on a first-lien basis by all of Paramount’s assets, including Paramount Global, Skydance Media, and Warner Bros, following the merger’s completion. Andy Gordon, Paramount’s chief strategy officer and chief operating officer, noted, “Our successful debt syndication and new debt facilities represent another important milestone towards the completion of our acquisition of Warner Bros. Discovery.”
Paramount and Warner Bros initially announced their transaction in February, following a competitive bidding process. The companies anticipate the deal will finalise in the third quarter of the year, pending all necessary regulatory approvals. This financing package is projected to be one of the largest debt packages recorded this year. Paramount previously stated in March that the combined post-merger entity is expected to carry a net debt of just under $80 billion. At the close of last year, Paramount reported $10.36 billion in net debt, while Warner Bros held $29 billion.
