The bond sale and expanded term loans put Paramount Skydance's $110 billion takeover of Warner Bros. Discovery on track to close Oct. 6.

  • The notes include $30.5 billion of first-lien and $11.4 billion of second-lien dollar debt, plus €885 million in euro notes.
  • Paramount expands its U.S. term loan to $8.5 billion, along with an €850 million tranche, both maturing in 2033.
  • A federal judge approves a settlement with 12 state attorneys general, clearing a major legal hurdle. 

Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD) drew attention overnight as Paramount Skydance priced a massive debt package to help fund its planned acquisition of WBD. The financing includes secured notes and expanded term loans, adding fresh momentum to the companies’ high-profile media deal. 

Paramount Skydance stock edged 0.7% higher overnight, while Warner Bros. stock was up 0.3%.  

Paramount Raises Billions In Secured Debt 

Paramount Skydance said on Wednesday that it has agreed to sell a series of senior secured notes spanning maturities from 2028 through 2066. The first-lien notes total $30.5 billion, while second-lien securities include $11.4 billion in dollar-denominated debt and €885 million ($1 billion) in euro-denominated notes.

The company also increased the U.S. portion of a new term loan facility to $8.5 billion from the previously announced $7.5 billion. The financing includes another €850  million ($962.85 million) tranche, with both portions scheduled to mature in 2033.

The U.S. dollar loan will carry interest at the Term Secured Overnight Financing Rate (SOFR) plus 2.75%, with the rate able to decrease later. The euro loan will charge the Euro Interbank Offered Rate (EURIBOR) plus 2.75%, also with a possible rate cut. The U.S. loans will be issued at 99.75% of their face value, while the euro loans will be issued at full value. 

Paramount-Warner Bros. Acquisition

Paramount Skydance plans to combine proceeds from the bond sales and term loans with cash and previously announced equity financing. The company expects to use the funds primarily to pay for its proposed acquisition of Warner Bros. Discovery and certain existing debt. The bond transactions are expected to close on Oct. 5.

On Wednesday, a California federal judge approved a settlement between Paramount Skydance and 12 state attorneys general, clearing a major legal hurdle for the company’s $110 billion mega acquisition. 

As part of the agreement, Paramount must release at least 30 movies in theaters each year and create editorial independence boards for news businesses including CBS and CNN. The deal is expected to close Oct. 6. Following the court approval, Paramount Skydance Chairman David Ellison named Mattel CEO Ynon Kreiz as co-CEO of the combined company. 

PSKY, WBD Stocks: Retail Stance 

On Stocktwits, retail sentiment around PSKY stock improved to ‘bullish’ from ‘neutral’ and sentiment around WBD remained ‘bullish’ 

A user said, “with all the good news on the closing, I have to say I'm extremely excited about this new hire[Kreiz]. This is the guy that made the Barbie movie a success...( From a toy company)! Ynon Kreiz Is a heck of a hire away from Mattel... Combining that with help from Oracle and this could be a huge powerhouse down the road. 

So far this year, PSKY stock has declined 22% while WBD stock has gained over 7%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<