A syndicate of Wall Street banks, spearheaded by JPMorgan, has launched a significant loan sale for Warner Bros Discovery. The initiative aims to refinance a portion of the media company’s US$15 billion bridge facility and cover associated fees. The offering comprises a US$5 billion term loan and a 1 billion euro (approximately US$1.16 billion) loan, both maturing in 2033, with a lender call scheduled for Wednesday. Warner Bros Discovery is a global media and entertainment company, known for its vast portfolio of content and franchises across film, television, and streaming.
This refinancing effort is critical as Warner Bros Discovery navigates a substantial debt load, reported at around US$32.7 billion at the end of March. The timing is particularly salient given investor worries that interest rates may persist at high levels for longer, consequently increasing borrowing costs for companies. Rising yields pose additional pressure for heavily indebted entities, compelling them to proactively manage or refinance existing financial obligations amidst a challenging economic backdrop.
The transaction’s bookrunners include Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs, NatWest, RBC, UBS, and Wells Fargo, as per a Reuters-seen term sheet. Meanwhile, Paramount Skydance is pursuing an acquisition of Warner Bros, valued at an estimated US$110 billion, with an anticipated closing in the third quarter of this year. If approved, the combined entity is projected to carry approximately US$79 billion in net debt upon completion. The deal awaits competition authority approval in Europe and Washington, with regulators examining its potential impact on studio output, content rights, streaming competition, and movie theatres.
