Wall Street banks led by JPMorgan on Tuesday launched a loan sale tied to Warner Bros Discovery that would help the media company refinance part of its $15 billion bridge facility and cover related fees and expenses.
The sale comprises a $5 billion term loan and a 1 billion euro ($1.16 billion) loan that mature in 2033, with a lender call scheduled for Wednesday.
The entertainment company's total debt was about $32.7 billion at the end of March and the refinancing efforts come at a time when investors worry interest rates may stay high for longer, increasing borrowing costs for companies.
Rising yields pose additional pressure for heavily indebted companies seeking to manage or refinance existing obligations.
Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs, NatWest, RBC, UBS and Wells Fargo are the bookrunners on the transaction, according to a term sheet seen by Reuters.
Paramount Skydance, which is looking to close a $110 billion deal for Warner Bros by the third quarter this year, said the combined company will have about $79 billion in net debt at closing.
The deal is awaiting approval from competition authorities in Europe and Washington, which are looking into how the merger would affect studio output, content rights, streaming competition and movie theaters.
Analysts expect the combined company to lean on proven franchises and growth in its streaming business to help manage its sizeable debt load.
