Paramount Streamlines Debt Financing in Preparation for WBD Agreement
Paramount Secures Financing for Warner Bros. Discovery Merger
Paramount has successfully completed the syndication of a previously disclosed bridge facility and finalized permanent financing transactions with a consortium of 18 lenders in preparation for its planned merger with Warner Bros. Discovery.
The financing consists of a two-tranche senior secured term loan facility and a senior secured revolving credit facility. According to a recent SEC filing, Paramount has reduced its aggregate commitments under the bridge facility from $54 billion to $49 billion, while eliminating commitments for the previously announced $3.5 billion revolving facility. This syndication effort disperses the financial risk among a broader range of banks, easing the burden on the deal’s primary lenders—Citibank, Bank of America, and Apollo.
Additionally, Paramount amended its existing senior unsecured revolving credit facility to increase committed liquidity from $3.5 billion to $5 billion ahead of the merger’s closing.
This week, Paramount also secured $24 billion in equity investments from Middle Eastern investors, which includes a notable $10 billion from Saudi Arabia’s sovereign wealth fund. The company anticipates the merger will conclude in the third quarter of this year, with David Ellison and the Ellison family at the helm, alongside billionaire Oracle co-founder Larry Ellison, who has guaranteed the equity portion of the deal.
“Our successful debt syndication and new debt facilities represent another important milestone towards the completion of our acquisition of Warner Bros. Discovery. This progress follows closely on the heels of our equity syndication, which diversifies our shareholder base and yields potential for strategic and commercial opportunities,” stated Andy Gordon, Paramount’s Chief Strategy Officer and Chief Operating Officer.
Under the terms of the agreement pending regulatory approval, Paramount is set to pay Warner Bros. Discovery shareholders $31 per share, with a shareholder vote scheduled for April 23.
