Paramount Skydance launches $7.5 billion term loan to fund Warner Bros. Discovery deal

PSKY launched syndication of a proposed $7.5 billion senior secured term loan on Thursday, part of a broader financing package for its acquisition of WBD, Reuters reported. The company also intends to raise about $44.4 billion of additional secured debt on top of the term loan and previously announced financings, according to the report.

The financing is the last major step before closing a deal valued at roughly $110 billion. Paramount recently settled litigation with a California-led group of states and the Writers Guild of America, which Reuters described as clearing the final domestic hurdles, and Warner Bros. Discovery leadership has told staff it expects the transaction to close by early October. The combined company is expected to carry about $80 billion of debt after closing.

Business Insider separately reported on internal documents outlining how CEO David Ellison wants to reshape Paramount+ as the merger nears; the article's details could not be independently verified. Paramount Skydance shares rose about 2.2% on the day. What to watch next is the pricing and demand for the term loan and the larger secured bond sale, which will set the combined company's interest burden, and any rating-agency action on the enlarged balance sheet.