Paramount Launches $7.5 Billion Debt Syndication
Summary
The loan is part of roughly $44.4 billion in additional secured debt Paramount plans to raise, on top of a $54 billion commitment already in place from Bank of America, Citigroup and Apollo
Paramount Skydance launched a syndication Thursday to raise $7.5 billion through a proposed senior secured incremental term B loan, part of the financing package for its acquisition of Warner Bros. Discovery, according to Reuters, Variety and Deadline. The company said it intends to raise approximately $44.4 billion in additional secured debt beyond this loan and its previously announced financings, using the proceeds along with cash on hand and prior equity financing to cover the purchase price and pay down existing debt. Bank of America, Citigroup and Apollo Global Management have already committed to $54 billion of the deal's debt financing, while three Middle Eastern sovereign wealth funds and LionTree Investment Fund committed to $47 billion in equity financing without board seats or governance rights; that equity commitment is backstopped by the Ellison family and RedBird Capital Partners, with Larry Ellison personally guaranteeing a substantial share. Semafor separately reported Paramount is considering adding Elon Musk to the equity syndicate. The loan launch follows Monday's settlement with a 12-state coalition and the WGA, though Thursday's court hearing on that settlement ended without approval, and the Block the Merger coalition has since filed an amicus brief asking the judge to reject it outright.