Wall Street banks, led by JPMorgan, have significantly increased a loan package for media giant Warner Bros Discovery, pushing the total to over $10 billion. This substantial financing aims to help Warner Bros Discovery refinance its existing debt as it moves towards its planned merger with Paramount Skydance. The U.S. dollar term loan saw a notable jump, almost doubling from an initial $5 billion to $9 billion.
Warner Bros Discovery is a prominent media company renowned for properties like CNN, TNT, and Food Network. Paramount, the acquiring entity, also operates a vast portfolio, including CBS, MTV, Comedy Central, and BET. The planned acquisition, valued at approximately $110 billion, was recently finalised after Netflix opted not to increase its previous offer. The combined entity will bring together a formidable array of entertainment and news assets.
The syndicated loan package includes a consistent 1 billion euro (US$1.16 billion or approximately A$1.7 billion) loan, which remained unchanged. A consortium of leading financial institutions serves as bookrunners for the transaction, comprising JPMorgan, Barclays, BNP, Deutsche Bank, NatWest, RBC, UBS, Wells Fargo, and Goldman Sachs. JPMorgan has already accrued a reported US$189 million in financing and other fees related to various Warner Bros-related transactions, as per a Reuters report from January.
