Paramount SkyDance issues bonds to raise $30 billions for the acquisition of Warner Bros. Discovery

Paramount Global, in order to advance its plan to acquire Warner Bros. Discovery, has successfully raised $30 billion through the issuance of investment-grade bonds, making this the largest single funding portion of the acquisition's financing arrangement. It is understood that this American media giant issued eight tranches of bonds, all of which ended up being priced at spreads lower than initially expected during discussions. Among them, the tranche with the longest maturity, expiring in 2066, narrowed its yield premium over U.S. Treasuries by about 0.35 percentage points, ultimately pricing at 3.3 percentage points above the benchmark rate.Additionally, informed sources revealed that aside from investment-grade bonds, the company is simultaneously issuing three tranches of high-yield U.S. dollar bonds with a total scale of $11.4 billion—the largest being a five-year tranche worth $6 billion. Moreover, it issued five-year euro-denominated bonds totaling €885 million (approximately $1 billion), adopting a multi-channel approach to meet the funding requirements for this acquisition.