Paramount seeks $7.5 billion debt raise to fund Warner Bros deal

Sept 24 (Reuters) - Paramount ‌Skydance said ​on ​Thursday it has launched a syndication for a proposed $7.5 billion senior secured term ‌loan, part of a broader financing package ⁠to fund its acquisition of Warner Bros Discovery.

The loan launch ‌comes days after Paramount ‌settled litigation with a California-led group of states and the Writers Guild of America over ​its $110 billion deal for Warner Bros Discovery, clearing final domestic hurdles for an acquisition ⁠that could reshape Hollywood.

Here are more details:

• Paramount is seeking to ​raise the $7.5 billion incremental term B facility, subject to market and other conditions.

• The ​company also intends to raise ‌about $44.4 billion of additional secured debt, in addition to the proposed term ⁠loan and previously announced financings.

• Paramount said it would use the proceeds, along with cash on hand ⁠and prior equity financing, to fund the Warner Bros Discovery ​purchase and repay some of its existing debt.

• The combined company is expected to have about $80 billion in debt ‌after the deal closes.

• Paramount agreed to increase U.S. film production and ‌establish an editorial-independence board for CBS and CNN, ⁠avoiding a forced ‌sale of assets ​including CNN and its film franchises.

(Reporting by Anzar Mehraj in Bengaluru; Editing by Shailesh ‌Kuber)

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