Netflix Secures Revolving, Term Loans For Warner Bros Deal – Lines Up $25B In Fresh Credit
Synopsis
The move gives the streaming giant greater flexibility as it prepares to fund one of the largest media deals in history.
Netflix Inc. (NFLX) has secured a significant new financing structure to support its acquisition of Warner Bros. Discovery, Inc. (WBD), by replacing part of its previous bridge loan with a more stable funding structure for the high-profile deal.
On December 5, Netflix inked a deal with WBD to acquire Warner Bros., including its film and television studios, HBO, and HBO Max, in a cash-and-stock transaction totaling $82.7 billion.
New Credit Facilities
On December 19, Netflix finalized a $5 billion Senior Unsecured Revolving Credit Agreement. The revolving facility can be used to cover the cash portion of the purchase price, pay related fees, refinance certain debts, and fund general corporate purposes.
In addition, Netflix arranged two Senior Unsecured Delayed Draw Term Loan facilities totaling $20 billion, one with a two-year term and the other with a three-year term. These loans also help finance the Warner Bros. acquisition, with the flexibility to repay early without penalty.
Netflix stock inched 0.6% higher in Monday’s premarket.
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