Paramount has secured financing for the planned $111 billion acquisition of Warner Bros. Discovery, attracting new debt instruments. The company syndicated a credit line and agreed on permanent financing with a group of banks, Reuters reports, writes UNN.
Details
According to a document filed with the US Securities and Exchange Commission, the interim loan was distributed among 18 banks. Paramount's total debt decreased to $49 billion from $54 billion previously.
The company also agreed on new credit instruments – a $5 billion term loan and a revolving credit line for another $5 billion. At the same time, a separate $3.5 billion credit line was canceled.
Trump bought Netflix and Warner Bros. bonds amid bidding war with Paramount - Reuters09.03.26, 17:15
The attracted loans are secured by the assets of Paramount, Skydance Media, and Warner Bros after the deal is completed.
Our successful debt syndication and new debt lines are another important milestone on the way to completing the acquisition of Warner Bros. Discovery
Paramount and Warner Bros announced the deal in February after competition from Netflix. The deal is expected to close in the third quarter after regulatory approval.
After the merger is completed, the combined company's net debt is expected to be almost $80 billion.
Warner Bros. Discovery signed a merger agreement with Paramount Skydance27.02.26, 23:14