Paramount SkyDance (NASDAQ:PSKY) has arranged permanent financing for its acquisition of Warner Bros Discovery (NASDAQ:WBD), lowering its debt commitments from $54 billion to $49 billion, according to regulatory filings on Thursday.
The financing was secured from a consortium of 18 banks, which syndicated its bridge loan and finalized $5 billion in senior term loans and a $5 billion revolving credit facility, while dropping a separate $3.5 billion credit line.
The loans are secured by a first-priority claim on all assets, including Paramount Global, Skydance Media, and Warner Bros., after the merger closes.
The deal’s financing is set to be one of the largest debt packages this year, with the combined company expected to carry nearly $80 billion in net debt. As of last year, Paramount had about $10.36 billion in net debt, while Warner Bros. held roughly $29 billion.
Paramount–WBD Deal Gains Funding Boost
David Ellison-led Paramount announced plans to buy Warner Bros. Discovery in February after Netflix (NASDAQ:NFLX) declined to increase its bid for the company’s assets. The deal heads for Q3 close with one of 2026’s largest debt financings. Earlier this week, Paramount Skydance secured $24 billion in equity commitments linked to a potential Warner Bros. Discovery takeover.
Qatar Investment Authority (QIA) and Abu Dhabi’s L’imad Holding Co are reported to be the other two sovereign-wealth funds involved in the financing deal. The deal could reportedly close as soon as the end of July.
Meanwhile, ISS has backed the Warner Bros-Paramount deal but rejected CEO David Zaslav‘s $886 million ‘extraordinary’ golden parachute. Executives are set to receive a total of $1.35 billion post-acquisition, including an estimated “excise tax grossup” of $335 million for Zaslav, which he would receive solely due to the deal’s execution. The future role of Zaslav in the merged entity remains unclear.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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