Paramount Skydance raises $7.5 billion via senior term‑B loan syndication to fund its $111 billion Warner Bros merger, boosting cash while protecting credit.

Paramount Skydance announced Thursday it will raise $7.5 billion through a senior secured term‑B loan syndication.

Deal financing

The company said the incremental tranche will be offered to institutional investors as senior secured term‑B loans. The financing structure is designed to provide immediate cash while preserving the company’s credit profile.

Merger context

Paramount Skydance plans to apply the proceeds toward its $111 billion merger with Warner Bros. Discovery. The merger, announced in July 2023, remains subject to regulatory approval and customary closing conditions.

Debt reduction plan

In addition to supporting the merger, the company will use part of the capital to pay down certain existing debt. Reducing outstanding obligations is intended to improve leverage ratios ahead of the transaction.

David Ellison, the firm’s chief executive, said the new loan tranche strengthens Paramount Skydance’s balance sheet and aligns financing with the strategic goals of the merger.

Paramount Skydance did not disclose the interest rate, maturity or covenant terms of the term‑B loans. The company said the offering complies with all applicable securities regulations.

The syndication adds $7.5 billion to the company’s previously announced financing plans. Paramount Skydance will continue to monitor market conditions as it moves toward the merger’s anticipated closing.