Paramount Raises $7.5B Debt for Warner Bros. Merger
Paramount Global has launched a syndication for a proposed $7.4 billion senior secured incremental term loan, part of a larger plan to raise approximately $44.4 billion in additional secured debt. This financing is intended to fund the $110 billion merger with Warner Bros. Discovery. The company will use the proceeds, along with cash on hand and previously announced equity financing, to pay the purchase price and repay existing debt. The deal was previously paused in July due to antitrust concerns but cleared after Paramount settled with California Attorney General Rob Bonta and 11 other states. CEO David Ellison expects the deal to finalize within two weeks. Morgan Stanley analysts estimate the combined company's net debt at $77.2 billion.
- •Paramount launched a syndication for a $7.4 billion senior secured incremental term loan.
- •Paramount intends to raise approximately $44.4 billion in additional secured debt.
- •The debt will finance the $110 billion merger with Warner Bros. Discovery.
