Sept 24 (Reuters) – Paramount Skydance said on Thursday it has launched a syndication for a proposed $7.5 billion senior secured term loan, part of a broader financing package to fund its acquisition of Warner Bros Discovery.
The loan launch comes days after Paramount settled litigation with a California-led group of states and the Writers Guild of America over its $110 billion deal for Warner Bros Discovery, clearing final domestic hurdles for an acquisition that could reshape Hollywood.
Here are more details:
• Paramount is seeking to raise the $7.5 billion incremental term B facility, subject to market and other conditions.
• The company also intends to raise about $44.4 billion of additional secured debt, in addition to the proposed term loan and previously announced financings.
• Paramount said it would use the proceeds, along with cash on hand and prior equity financing, to fund the Warner Bros Discovery purchase and repay some of its existing debt.
• The combined company is expected to have about $80 billion in debt after the deal closes.
• Paramount agreed to increase U.S. film production and establish an editorial-independence board for CBS and CNN, avoiding a forced sale of assets including CNN and its film franchises.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Shailesh Kuber)
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