Paramount Secures Debt for Warner Bros Acquisition

• Paramount secured $5 billion in senior term loan As and a new $5 billion revolving credit facility, while dropping a separate $3.5 billion credit facility
• The post-merger entity will have net debt of just under $80 billion, combining Paramount's $10.36 billion and Warner Bros' $29 billion in existing debt
• The financing package is expected to be one of the largest debt deals this year, with all loans backed by first-lien on assets of Paramount Global, Skydance Media, and Warner Bros post-merger

Paramount Secures Financing for $111 Billion Warner Bros Discovery Acquisition

Key Transaction Details:

Paramount Skydance has finalized debt financing for its planned $111 billion acquisition of Warner Bros Discovery, marking one of the largest debt packages of 2026. The deal, announced in February following a competitive bidding war with Netflix, is expected to close in Q3 pending regulatory approvals.

Financing Structure:

• Bridge loan facility syndicated across 18 banks
• Debt commitments reduced to $49 billion from $54 billion
• New permanent financing includes $5 billion in senior term loan As and $5 billion revolving credit facility
• Previous $3.5 billion credit facility dropped
• All loans backed by first-lien on Paramount's assets, including Paramount Global, Skydance Media, and Warner Bros post-merger

Debt Profile:

The combined entity will carry net debt of approximately $80 billion. As of year-end, Paramount held $10.36 billion in net debt, while Warner Bros Discovery reported $29 billion.

Market Implications:

This transaction represents a major consolidation in the entertainment and streaming sector, combining three significant media entities. The successful debt syndication, confirmed by Paramount COO Andy Gordon, signals strong lender confidence despite the substantial leverage involved. The deal reflects ongoing industry consolidation as traditional media companies seek scale to compete in the streaming era.

Companies Involved:

Primary parties include Paramount, Skydance Media, and Warner Bros Discovery, with Netflix noted as a competing bidder. The financing involves a consortium of 18 banks providing the debt package.