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Paramount Woos Investors With $44 Billion Debt Sale To Finance WBD Deal
Deadline • • business
Key Points:
- Paramount has launched a $44.4 billion debt offering to finance its acquisition of Warner Bros. Discovery (WBD), pending final approval from a federal judge on an antitrust settlement.
- The merger’s closing hinges on U.S. District Judge Araceli Martinez-Olguin approving the settlement of an antitrust lawsuit led by 12 state attorneys general, with opposition briefs recently submitted.
- The debt offering includes approximately $32 billion in investment-grade bonds and $12.4 billion in high-yield bonds, with strong demand reported by Bank of America and Citigroup.
- Paramount plans to use the debt proceeds, cash on hand, term loans, and equity financing—backed by the Lawrence J. Ellison Revocable Trust and other investors—to fund the $78 billion cash consideration for WBD shareholders.
- The combined company will carry over $80 billion in long-term debt, resulting in annual interest expenses exceeding $6 billion, while Ellison aims to achieve $6 billion in cost synergies post-merger.
