According to a filing with the U.S. Securities and Exchange Commission, the company has successfully restructured and syndicated a significant portion of its debt financing, while also securing permanent funding arrangements to support the planned merger and the post-combination business.
The latest transactions are expected to reduce Paramount’s total long-term debt commitments from $54 billion to $49 billion. In addition, earlier plans for a $3.5 billion revolving credit facility have been scrapped, while an existing unsecured credit facility has been expanded from $3.5 billion to $5 billion to boost liquidity ahead of the deal’s completion.
The acquisition remains subject to regulatory clearance and shareholder approval, with investors of Warner Bros. Discovery scheduled to vote at a special meeting later this month.
Paramount’s Chief Strategy Officer and Chief Operating Officer, Andy Gordon, described the financing developments as a key step toward finalising the transaction. He noted that the move follows recent equity fundraising efforts aimed at broadening the company’s investor base.
Those efforts saw participation from major sovereign wealth funds, including Public Investment Fund, alongside funds from Qatar and Abu Dhabi, as well as LionTree Investment Fund. Collectively, the Middle Eastern investors are contributing close to $24 billion, with Saudi Arabia’s fund accounting for roughly $10 billion.
Gordon said the strong interest in both equity and debt offerings reflects market confidence in the strategic rationale behind the merger, which is expected to create a more competitive global media and entertainment company with expanded content capabilities.
As part of the restructuring, Paramount syndicated its bridge loan commitments across 18 banks, reducing the exposure of key lenders such as Citibank, Bank of America, and Apollo. The company also secured new permanent financing facilities, including a $5 billion Term Loan A and a $5 billion revolving credit line to be incorporated into the combined entity’s capital structure.
Further details in the filing show that, on April 7, Paramount entered into a credit agreement led by Citibank as administrative agent, with major financial institutions including BofA Securities, Deutsche Bank Securities, Wells Fargo Securities, and Apollo Global Funding acting as arrangers.
In a related development, Paramount disclosed that Jeff Shell, who recently stepped down as president and board member, will receive a severance package of at least $5 million following his departure.
The transaction, if approved, is set to reshape the global media landscape by combining two of the industry’s most prominent players.