Paramount Skydance Prices $41B Debt Offering Amid Restructuring Efforts
Paramount Skydance has priced a massive debt offering worth over $41.4 billion as part of its restructuring efforts. The company will issue senior secured notes with maturities ranging from 2025 to 2066, including $30 billion of first-lien notes and $11.4 billion of second-lien dollar notes.
The interest rates on these notes range from 6.3% to 9.125%, a relatively high rate for the current market conditions. The sale is expected to close on October 5, subject to customary closing conditions.
In addition to the senior secured notes, Paramount Skydance also priced an incremental term loan facility worth $8.5 billion in U.S. dollars and €850 million in euros, both maturing in 2033.
The company's settlement with 12 state attorneys general was approved by a California federal judge, allowing its purchase of Warner Bros. Discovery to be completed. The deal is valued at $110 billion.