Warner Bros. Discovery inks new $13B term loan deal
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Rhea-AI Filing Summary
Warner Bros. Discovery, Inc. entered into a new First Lien Credit Agreement through its wholly owned subsidiary Discovery Global Holdings, Inc. This agreement provides 7-year $13,000 million U.S. dollar term loans and 7-year €1,717 million Euro term loans, collectively called the Initial Term Loans.
On June 4, 2026, the company borrowed these Initial Term Loans and, together with cash on hand, repaid in full $15,000 million of outstanding loans under its prior Non-Investment Grade Leveraged Bridge Loan Agreement. The new loans mature on June 4, 2033, with the dollar loans amortizing at 1.00% per year.
Interest on the dollar loans is Term SOFR plus 2.50% or a Base Rate plus 1.50%, at the borrower’s option, while the Euro loans carry EURIBOR plus 2.50%. The obligations are secured by liens on substantially all assets of the company and certain subsidiaries and are guaranteed by the same entities that back the existing revolving credit facility. The agreement includes customary covenants and events of default, including provisions tied to significant corporate events such as a change of control.
Insights
Large secured term loans refinance a sizeable bridge facility on longer-dated terms.
The company, through Discovery Global Holdings, Inc., has replaced a $15,000 million leveraged bridge loan with new 7-year term loans totaling $13,000 million plus €1,717 million. These loans mature on June 4, 2033 and amortize at 1.00% annually for the dollar tranche.
The interest structure combines Term SOFR or a Base Rate plus a fixed margin for the dollar loans, and EURIBOR plus a fixed margin for the Euro loans. Obligations are first-lien secured and guaranteed by the company and certain subsidiaries, sharing collateral with the existing revolving credit facility.
The agreement adds customary negative covenants, mandatory prepayment provisions, and change-of-control triggers, including reference to the proposed Paramount Skydance Corporation acquisition. Overall, this represents a significant, but conventional, refinancing step within the company’s debt structure.
8-K Event Classification
Key Figures
Key Terms
First Lien Credit Agreement financial
Term SOFR financial
Base Rate financial
EURIBOR Screen Rate financial
Non-Investment Grade Leveraged Bridge Loan Agreement financial
change of control financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What new credit agreement did Warner Bros. Discovery (WBD) enter into?
How much debt is provided under Warner Bros. Discovery’s new First Lien Credit Agreement?
What did Warner Bros. Discovery use the new term loan proceeds for?
What are the interest rates on Warner Bros. Discovery’s new term loans?
When do Warner Bros. Discovery’s new Initial Term Loans mature and how do they amortize?
What security and covenants support Warner Bros. Discovery’s First Lien Credit Agreement?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 1.01 | Entry into a Material Definitive Agreement. |
First Lien Credit Agreement
On June 4, 2026, Discovery Global Holdings, Inc. (“DGH”), a wholly-owned subsidiary of Warner Bros. Discovery, Inc. (the “Company”), entered into that certain First Lien Credit Agreement (the “First Lien Credit Agreement”) among the Company, as holdco, DGH, as parent borrower, the designated subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A. (“JPM”), as U.S. administrative agent and collateral agent, and J.P. Morgan SE, as non-U.S. administrative agent. The First Lien Credit Agreement provides for (i) 7-year $13,000 million U.S. dollar-denominated term loans (the “Initial Dollar Term Loans”) and (ii) 7-year €1,717 million Euro-denominated term loans (the “Initial Euro Term Loans” and, together with the Initial Dollar Term Loans, the “Initial Term Loans”).
On June 4, 2026, DGH borrowed the Initial Term Loans and used the net proceeds thereof, together with cash on the balance sheet, to repay in full $15,000 million of outstanding loans under that certain Non-Investment Grade Leveraged Bridge Loan Agreement, dated as of June 26, 2025 (as amended by that certain Amendment No. 1, dated as of February 18, 2026), by and among the Company, as parent, DGH, as borrower, the lenders from time to time party thereto and JPM, as administrative agent and collateral agent.
The Initial Dollar Term Loans bear interest, at DGH’s option, at (x) Term SOFR (as defined in the First Lien Credit Agreement) plus 2.50% per annum or (y) the Base Rate (as defined in the First Lien Credit Agreement) plus 1.50% per annum. The Initial Euro Term Loans bear interest at the EURIBOR Screen Rate (as defined in the First Lien Credit Agreement) plus 2.50% per annum. The Initial Term Loans mature on June 4, 2033, and the Initial Dollar Term Loans also amortize at 1.00% per annum (payable quarterly).
The obligations of DGH under the First Lien Credit Agreement are (i) secured by a lien on substantially all of the assets of the Company, DGH and certain wholly-owned domestic subsidiaries of the Company, subject to certain exceptions, and on a pari passu basis with the Company’s existing revolving credit facility and (ii) guaranteed by the Company and certain of its wholly-owned domestic subsidiaries, which are the same guarantors as under the Company’s existing revolving credit facility.
The First Lien Credit Agreement contains customary representations and warranties, as well as affirmative and negative covenants. Negative covenants include, among others, covenants that restrict the ability of the Company and certain of its subsidiaries to engage in mergers, consolidations and asset sales, incur debt and liens, enter into transactions with affiliates, enter into burdensome agreements, pay dividends and certain other restricted payments and make certain restricted investments, in each case, as set forth in the First Lien Credit Agreement and subject to certain thresholds and exceptions. The First Lien Credit Agreement does not contain any financial maintenance covenant. The First Lien Credit Agreement also contains customary and other mandatory prepayments with respect to the Initial Term Loans.
Upon the occurrence of certain significant corporate events (including a change of control, such as the consummation of the previously disclosed proposed acquisition of the Company by Paramount Skydance Corporation) or certain other customary events constituting an event of default under the First Lien Credit Agreement, all loans outstanding under the First Lien Credit Agreement (including accrued interest and fees payable thereunder) may be declared immediately due and payable.
The foregoing description of the First Lien Credit Agreement does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the First Lien Credit Agreement, a copy of which is attached as Exhibit 10.1 hereto and incorporated herein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation |
The information in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
| Exhibit |
Description | |
| 10.1* | First Lien Credit Agreement, dated as of June 4, 2026, among Warner Bros. Discovery, Inc., Discovery Global Holdings, Inc., the designated subsidiary borrowers from time to time party thereto, each lender from time to time party thereto, JPMorgan Chase Bank, N.A., as U.S. administrative agent and collateral agent and J.P. Morgan SE, as non-U.S. administrative agent | |
| 101 | Inline XBRL Instance Document - the instance document does not appear in the Interactive Date File because its XBRL tags are embedded within the Inline XBRL document | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
| * | Certain exhibit(s) have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: June 4, 2026 | WARNER BROS. DISCOVERY, INC. | |||||
| By: | /s/ Gunnar Wiedenfels | |||||
| Name: | Gunnar Wiedenfels | |||||
| Title: | Chief Financial Officer | |||||