Paramount's Debt Sale to Proceed After Lawsuits Settled
Bankers are preparing for the sale of $49 billion in financing backing Paramount Skydance Corp.'s acquisition of Warner Bros. Discovery Inc., following the resolution of legal challenges that had delayed the deal. The underwriters—Bank of America, Citigroup, and Apollo Global Management—had secured significant investor demand earlier this year before proceedings stalled due to litigation threats. The debt package includes $30 billion in investment-grade bonds, $7.5 billion in loans, and about $12 billion in second-lien bonds, targeting a broad range of investors across dollar and euro markets. The structure avoids caps on interest rates, allowing lenders flexibility if borrowing costs rise further amid recent rate hikes by the Federal Reserve and European Central Bank. Regulators have approved the merger in nearly 70 jurisdictions, including U.S. federal agencies like the FCC. Paramount aims to close the deal soon, which would give it control over major studios, streaming services, and TV channels such as CBS and HBO.
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Topics: debt sale lawsuit resolution paramount acquisition warner bros. discovery