Paramount Skydance launches $44.4bn debt offering to help fund Warner Bros. Discovery deal
Proceeds will sit alongside cash on hand, term loans and previously announced equity financing to fund the acquisition and repay existing debt
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Paramount Skydance has launched an offering of approximately $44.4 billion in senior secured first lien and second lien notes, sold to qualified institutional buyers and offshore investors.
The company says proceeds, combined with cash on hand, term loan borrowings and proceeds from its previously announced equity financing, will help fund its acquisition of Warner Bros. Discovery and repay certain existing debt. The offering is subject to market and other conditions, and Paramount says completing it is not a condition to closing the acquisition.
The debt sale had been one of the financing pieces the merger was contingent on. With antitrust challenges to the deal settled and equity financing already lined up, this offering addresses a funding question that had been outstanding, though the company itself says the notes do not need to close for the acquisition to proceed.
The stock's recent delisting announcement points to investors pricing in some expectation that the deal will complete, even as the notes offering remains subject to conditions that have not yet been met.