Paramount Skydance Corporation Announces Launch of Syndication of Incremental Term B Facility

The proposed borrowings are part of a funding plan for the Warner Bros. Discovery acquisition and repayment of certain debt.

Rhea-AI Summary

Paramount Skydance (PSKY) launched syndication on September 24, 2026, for a proposed $7.5 billion senior secured incremental term B loan facility.

Subject to market and other conditions, Paramount also intends to raise approximately $44.4 billion of additional secured debt, on top of the proposed facility and previously announced financings. It intends to use the borrowing proceeds, cash on hand and proceeds from previously announced equity financing to fund its planned acquisition of Warner Bros. Discovery and repay certain existing debt. Neither the financing nor the acquisition is assured.

Market Context

The July 31 S-3ASR is effective and covers debt securities; that filing is relevant to this financin...

Analysis

The July 31 S-3ASR is effective and covers debt securities; that filing is relevant to this financing announcement, but it does not show that the proposed Term B borrowing will use the shelf.

Key Figures

Proposed incremental Term B facility: $7.5 billion Additional secured debt: approximately $44.4 billion

Proposed incremental Term B facility

$7.5 billion

Aggregate principal amount

Additional secured debt

approximately $44.4 billion

In addition to the proposed facility and previously announced financings

Historical Context

1 past event · Latest: Sep 21

1 event

1. Sep 21

   debt-offer extension

   24h Move

   +2.2%

   Extended WBD-note tender and exchange offers tied to the same proposed acquisition financing process

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

syndication, senior secured, term b loans, net proceeds

4 terms

syndication financial

"launch of syndication for a proposed senior secured incremental tranche"

Syndication is a way for several financial firms to share a large loan, bond sale, or securities offering so no single institution bears all the risk or work. For investors, syndication matters because it affects how easily a deal gets funded, how quickly it can be sold or traded, and the fees and pricing you ultimately see—think of several people pooling money to buy a big item that would be risky or impossible for one person alone.

senior secured financial

"proposed senior secured incremental tranche of term "B" loans"

Senior secured describes a loan or bond that has first claim on a company’s assets and is backed by specific collateral, like a mortgage on property. For investors, that means they are paid before other creditors if the company struggles or is liquidated, reducing the chance of loss compared with unsecured or junior debt. Think of it as a front-of-the-line, collateral-backed claim that typically carries lower interest because of that added protection.

term b loans financial

"incremental tranche of term "B" loans"

Term B loans are large, longer‑dated bank loans made to companies, often used to fund big acquisitions or refinance existing debt; think of them as a long-term mortgage a company takes out but sold to a group of institutional investors rather than kept by one bank. They matter to investors because they usually pay higher interest than plain corporate bonds and are widely traded by funds, so changes in demand, credit quality or interest rates can affect the value and yield of these loans in a portfolio.

net proceeds financial

"utilize the net proceeds of these borrowings"

The amount of money a company actually keeps from a sale or fundraising after paying all direct costs and fees, similar to take-home pay after taxes and deductions. Investors care because net proceeds determine how much cash is available for things that affect value—paying debt, funding projects, buying assets, or returning money to shareholders—so it influences future growth potential and financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LOS ANGELES and NEW YORK, Sept. 24, 2026 /PRNewswire/ -- Paramount Skydance Corporation (NASDAQ: PSKY) (the "Company" or "Paramount") today announced the launch of syndication for a proposed senior secured incremental tranche of term "B" loans in an aggregate principal amount of $7.5 billion (the "Incremental Term B Facility"). The consummation of the Incremental Term B Facility is subject to market and other conditions.

Subject to market and other conditions, Paramount intends to raise approximately $44.4 billion of additional secured debt, in addition to the Incremental Term B Facility and previously announced financings. Paramount intends to utilize the net proceeds of these borrowings, together with cash on hand and the net proceeds of the previously announced equity financing, to finance the purchase price for its previously announced acquisition (the "Acquisition") of Warner Bros. Discovery, Inc. ("WBD") and the repayment of certain existing debt.

The terms of the proposed financing, including but not limited to the principal amounts, interest rates, currency denominations and maturities of the various components of such financing, and the consummation of the Acquisition, are subject to a number of significant conditions, and there can be no assurance that the Company will consummate any of these transactions on the anticipated terms or timing, or at all.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security, and does not constitute an offer, solicitation, or sale of any security in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

About Paramount, a Skydance Corporation

Paramount, a Skydance Corporation is a next-generation global media and entertainment company, comprised of three business segments: Studios, Direct-to-Consumer, and TV Media. PSKY's portfolio unites legendary brands, including Paramount Pictures, Paramount Television, CBS, CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance Animation, Film, Television, Interactive/Games, and Paramount Sports Entertainment.

PSKY-IR

Cautionary Note Concerning Forward-Looking Statements

This communication contains "forward-looking statements" regarding the Acquisition and the other transactions referred to herein. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Paramount. Risks and uncertainties include, but are not limited to: the risk that the closing conditions for the Acquisition will not be satisfied, including the risk that clearances under applicable antitrust or regulatory laws will not be obtained or will be obtained subject to conditions that are not anticipated; the possibility that the transactions described herein will not be completed in the expected timeframe or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the Acquisition; potential adverse effects to the businesses of Paramount or WBD during the pendency of the Acquisition, such as employee departures or distraction of management from business operations; negative effects of the announcement or the consummation of the Acquisition on the market price of WBD or Paramount stock; the risk of stockholder litigation relating to the Acquisition, including resulting expense or delay; the potential that the expected benefits and opportunities of the Acquisition, if completed, may not be realized or may take longer to realize than expected; risks related to the streaming business of the post-Acquisition combined business (the "Combined Company"); the adverse impact on the Combined Company's advertising revenues as a result of changes in consumer behavior, advertising market conditions, and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to the Combined Company's decision to invest in new businesses, products, services, and technologies, and the evolution of the Combined Company's business strategy; the potential for loss of carriage or other reduction in, or the impact of negotiations for, the distribution of the Combined Company's content; damage to the Combined Company's reputation or brands; losses due to asset impairment charges for goodwill, content and long-lived assets, including finite-lived intangible assets; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; challenges in protecting and maintaining the Combined Company's intellectual property rights; domestic and global political, economic and regulatory factors affecting the Combined Company's business generally or the Acquisition; the inability to hire or retain key employees or secure creative talent; disruptions to the Combined Company's operations as a result of labor disputes; risks and costs associated with the integration of, and Paramount's ability to integrate, the businesses of Paramount Global, Skydance Media, LLC, and WBD successfully and to achieve anticipated synergies, including in the amounts or on the timelines anticipated to realize such synergies; litigation related to the Acquisition and other matters or transactions; risks associated with the Combined Company's holding company structure, including its dependence on distributions from its subsidiaries to meet tax obligations and other cash requirements; risks related to our indebtedness, including our substantial outstanding debt obligations, our ability to incur substantially more debt and our ability to meet the financial and other covenants contained in the agreements governing the indebtedness of Paramount, WBD, or the Combined Company. A further list and description of these risks, uncertainties and other factors and the general risks associated with the respective businesses of Paramount and WBD can be found in Paramount's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 25, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," Paramount's most recently filed Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 4, 2026, including in the sections captioned "Cautionary Note Concerning Forward-Looking Statements" and "Item 1A. Risk Factors," and Paramount's subsequent filings with the SEC, and in WBD's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 27, 2026, including in the section captioned "Item 1A. Risk Factors," WBD's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 6, 2026, and WBD's subsequent filings with the SEC. Neither Paramount nor WBD undertakes to update any forward-looking statement as a result of new information or future events or developments, except as required by law.

 

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SOURCE Paramount Skydance Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much debt does Paramount Skydance (PSKY) plan to raise for its Warner Bros. Discovery acquisition?

Paramount launched syndication for a proposed $7.5 billion term B loan facility and intends to raise approximately $44.4 billion of additional secured debt, subject to market and other conditions. The latter amount is in addition to the proposed facility and previously announced financings.

Are the terms of Paramount Skydance's proposed acquisition financing final?

No. The principal amounts, interest rates, currency denominations and maturities of the proposed financing remain subject to conditions. Paramount said there is no assurance that the financing or the Warner Bros. Discovery acquisition will be completed on the anticipated terms or timing, or at all.