WASHINGTON — Paramount Skydance has syndicated its bridge loan facility and secured permanent financing from a group of banks for its planned US$111 billion acquisition of Warner Bros Discovery.
In a Thursday filing with the Securities and Exchange Commission, Paramount said its bridge facility backing the Warner Bros deal was sold down to a group of 18 banks and that its debt commitments were now $49 billion from $54 billion previously.
The company also entered into permanent financing deals with the bank group to provide for $5 billion in term loan As, which are senior most among loans, and a new $5 billion revolving credit facility. A separate $3.5 billion credit facility was dropped, the filing noted.
The loans are backed on a first-lien basis by all of Paramount’s assets, including Paramount Global, Skydance Media and Warner Bros after the merger’s close.
“Our successful debt syndication and new debt facilities represent another important milestone towards the completion of our acquisition of Warner Bros. Discovery," said Andy Gordon, Paramount’s chief strategy officer and chief operating officer, in a written statement.
Paramount and Warner Bros announced their transaction in February after a heated bidding war involving Netflix. They expect the deal to close in the third quarter after regulatory approvals.
The financing for the deal is expected to be one of the largest debt packages this year. The post-merger entity will have net debt of just under $80 billion, Paramount said in March. Paramount had $10.36 billion in net debt, and Warner Bros had $29 billion, at the end of last year.
Reporting by Matt Tracy in Washington; Editing by Kirsten Donovan
