The merger of the giants is getting closer. The new owner of TVN is taking a key step

Paramount Skydance has completed a series of transactions aimed at changing the debt financing structure for its proposed acquisition of Warner Bros. Discovery worth $111 billion. The company announced this in a document filed with the US Securities and Exchange Commission. According to the information provided, syndication of previously disclosed debt financing has been agreed and agreements have been entered into for permanent financing to support the completion of the merger and form part of the capital structure after the closing of the transaction.

As a result of these actions, the total value of Paramount’s long-term debt obligations related to the transaction is expected to be reduced from $54 billion to $54 billion. up to USD 49 billion At the same time, previously disclosed liabilities regarding a revolving credit line worth USD 3.5 billion were zeroed. The company also changed the terms of its existing unsecured revolving credit facility, increasing available liquidity from $3.5 billion. up to USD 5 billion before the merger was closed.

Acquisition of Warner Bros. Discovery by Paramount Skydance is getting closer

The planned transaction is still awaiting regulatory approval and approval of Warner Bros. shareholders. Discovery. The vote on this matter is to take place during a special meeting scheduled for April 23. However, the company indicates that the latest financial decisions are another important stage bringing it closer to finalizing the acquisition.

Paramount chief strategy officer and COO Andy Gordon described the debt agreements as another significant milestone in the acquisition of Warner Bros. Discovery. He added that this progress comes shortly after equity syndication, which is expected to diversify the shareholder base and create the potential for new strategic and commercial opportunities.

Paramount Skydance with new investors

This is a reference to Paramount’s earlier announcement that sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi, as well as LionTree Investment Fund, joined the group of equity investors associated with the WBD takeover bid. In total, three funds from the Middle East are to invest almost USD 24 billion, of which approximately USD 10 billion. is to go to the Saudi Public Investment Fund.

Andy Gordon also highlighted that strong demand for both the equity and debt offerings demonstrates confidence in the company’s vision and its ability to create greater value by combining two established companies. As he noted, the result would be the creation of a strong media and entertainment group that would strengthen competition, better respond to the needs of the creators’ community and provide audiences with even more attractive stories.

New loan agreements

In the latest move, Paramount syndicated the bridge loan obligations, reducing the exposure of Citi, Bank of America and Apollo and spreading the entire amount among 18 banks. The company also entered into permanent financing agreements, which are to be included in the capital structure of the combined Paramount-WBD. These include, among others, Term Loan A worth USD 5 billion. and a new renewable line also worth USD 5 billion.

The document shows that on April 7, Paramount signed a loan agreement with Citibank as its administrative and security agent. The main arrangers and bookrunners also included BofA Securities, Apollo Global Funding, Deutsche Bank Securities and Wells Fargo Securities. In a separate Form 8-K disclosure, the company also said that Jeff Shell, who resigned as president and board member on April 8, could receive at least $5 million. clearance.