Paramount Skydance said it has syndicated its bridge loan and struck permanent financing agreements with a syndicate of banks to underwrite its planned $111 billion acquisition of Warner Bros Discovery.
In a recent filing with the Securities and Exchange Commission, Paramount reported that the bridge facility supporting the acquisition was sold down to a group of 18 banks. That move reduced the companys debt commitments tied to the facility from $54 billion to $49 billion.
Concurrent with the syndication, Paramount also reached permanent financing agreements with the same bank group that will provide $5 billion in term loan As - the top tranche in the loan structure - and a new $5 billion revolving credit facility. The filing noted that a separate $3.5 billion credit facility that had been contemplated was dropped.
The filing specifies that the loans will be secured on a first-lien basis by all of Paramounts assets, which the company says will include Paramount Global, Skydance Media and Warner Bros once the merger has closed.
"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, Paramounts chief strategy officer and chief operating officer, in a written statement.
Paramount and Warner Bros first unveiled the transaction in February following an intense bidding contest that included Netflix. The companies continue to expect regulatory approvals and are targeting a closing in the third quarter.
Paramount has characterized the financing as one of the largest debt packages of the year. In March the company said the combined post-merger entity would carry net debt of just under $80 billion.
At the end of last year, Paramount reported net debt of $10.36 billion, while Warner Bros reported net debt of $29 billion.
Contextual note: The filing details above reflect commitments and structures disclosed by Paramount and do not add or change any previously reported figures.