Paramount Secures and Optimizes Debt Financing for WBD Acquisition

Paramount has successfully completed the syndication of a bridge facility to finance its merger with Warner Bros. Discovery (WBD). The company has entered into permanent financing arrangements with 18 lenders. This effort includes a two-tranche senior secured term loan facility and a senior secured revolving credit facility.

Key Financial Transactions

According to a recent SEC filing, the total commitments under the bridge facility have decreased from $54 billion to $49 billion. Additionally, the previously announced $3.5 billion revolving credit facility now shows zero commitments.

• Syndication of bridge commitments to a larger bank group reduces risk for primary lenders.
• Primary lenders include Citibank, Bank of America, and Apollo.
• Paramount amended its senior unsecured revolving credit facility, increasing committed liquidity from $3.5 billion to $5 billion.

Equity Investments from Middle East

Earlier this week, Paramount secured $24 billion in equity investments, which includes $10 billion from Saudi Arabia’s sovereign wealth fund. This financial backing is a significant step toward the completion of the merger, and the company anticipates closing the deal in the third quarter.

David Ellison leads Paramount and is supported by the Ellison family. Notably, billionaire Larry Ellison, co-founder of Oracle, has guaranteed the equity portion of the merger.

Comments from Leadership

Andy Gordon, Paramount’s Chief Strategy Officer and COO, stated, “Our successful debt syndication and new debt facilities represent another important milestone towards the completion of our acquisition of Warner Bros. Discovery. This progress follows closely on the heels of our equity syndication, which diversifies our shareholder base and yields potential for strategic and commercial opportunities.”

Transaction Details

Paramount will buy WBD shareholders out at a price of $31 per share in cash. The deal is still subject to regulatory approval and a shareholder vote scheduled for April 23.