Paramount Skydance raising $44B+ bonds for Warner Bros. Discovery takeover
Paramount Skydance Corp. is raising more than $44 billion through bonds to help pay for its takeover of Warner Bros. Discovery.
This comes right after clearing some legal hurdles, and the total financing package now sits at $52 billion (with $7.5 billion in loans).
If it goes as planned, this will be one of the biggest bond sales ever, with long-term investors getting yields in the low 9% range.
Paramount racing to close $110B deal
The bond sale mixes $32 billion in safer investment-grade debt and $12.4 billion in riskier "junk" bonds.
There are eight tranches of US dollar-denominated investment-grade bonds, and the high-yield portion includes two euro-denominated tranches and three US dollar tranches.
After some lawsuit delays, Paramount is hustling to wrap up funding by Wednesday so they can close their giant $110 billion deal before October, or else face a steep daily penalty of $7 million for missing the deadline.