AcquisitionsMay 19, 2026, 05:27 PM
Paramount Skydance Launches $15.2B Debt Offers for WBD Acquisition
AI Summary
Paramount Skydance Corporation announced the commencement of tender offers for cash and exchange offers for newly issued PSKY notes, targeting up to $2.4 billion and $12.8 billion, respectively, of debt securities issued by Discovery Global Holdings, Inc. and Discovery Communications, LLC (WBD Issuers). These offers are being conducted in connection with Paramount's proposed acquisition of Warner Bros. Discovery, Inc. and are contingent upon the acquisition's consummation and receipt of requisite consents for related indenture amendments. Concurrently, WBD Issuers have begun consent solicitations to amend the indentures governing their notes.
Key Highlights
- Paramount Skydance commenced cash tender offers for up to $2.4 billion of WBD debt.
- Paramount Skydance commenced exchange offers for up to $12.8 billion of WBD debt for new PSKY notes.
- Offers are contingent on requisite consents for proposed indenture amendments and the WBD acquisition.
- WBD Issuers initiated consent solicitations to amend indentures for WBD Notes, extending the Required Exchange Transaction deadline to March 4, 2027.
- New PSKY Notes will be guaranteed by Paramount's domestic subsidiaries and secured on a second lien basis.
- The WBD acquisition involves an estimated $77.7 billion cash consideration to WBD common stockholders.
- Paramount expects to fund the acquisition with up to $46.7 billion in equity financing and $49.0 billion in bridge term loan facility.
- Tender and Exchange Offers expire on June 17, 2026, with settlement conditioned on the acquisition closing.
Price Impact
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