Paramount Skydance prices $41.4 B notes and $8.5 B term loan B facility to fund Warner Bros. Discovery acquisition
Paramount Skydance Corporation announced a senior secured notes offering of $41.4 billion and €885 million, together with an $8.5 billion and €850 million Term Loan B facility. The notes consist of multiple tranches of first‑lien and second‑lien debt with varying maturities and coupons. The facility is priced at 99.75% of face value for the USD tranche and 100% for the EUR tranche, bearing interest at Term SOFR + 2.75% and EURIBOR + 2.75% respectively. Proceeds will be used to finance the purchase price of Warner Bros. Discovery and to repay existing debt, with closing expected on 5 Oct 2026.
Why it matters
The company states the financing will provide the cash needed to complete its acquisition of Warner Bros. Discovery, enabling the deal to proceed. The large debt issuance also increases Paramount Skydance’s leverage, which could affect its credit profile and future financing costs.
Key facts
- 1The company agreed to sell $3.5 billion of 6.30% First Lien Notes due 2028. prnewswire.com
- 2It also agreed to sell $6 billion of 8.250% Second Lien Notes due 2031. prnewswire.com
- 3The €885 million second‑lien notes carry a 7.000% coupon and mature in 2031. prnewswire.com
- 4The USD Term Loan B tranche is $8.5 billion, priced at 99.75% of face value with interest at Term SOFR + 2.75%. prnewswire.com
- 5The EUR Term Loan B tranche is €850 million, priced at 100% of face value with interest at EURIBOR + 2.75%. prnewswire.com
- 6The notes and loan facility are expected to close on 5 Oct 2026, subject to customary conditions. prnewswire.com
Summary written by AlphAI from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.