Paramount raised $49 billion in debt for a $111 billion deal with Warner Bros
Kyiv • UNN
Paramount syndicated a loan to 18 banks to finance the $111 billion deal. The combined company's net debt will reach almost $80 billion.
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.
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.
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