Paramount Skydance Corporation (PSKY) has commenced debt tender and exchange offers for certain notes issued by subsidiaries of Warner Bros. Discovery (WBD) as part of its financing plan for the proposed acquisition of WBD. The offers consist of a cash tender for up to $2.4 billion and an exchange for new PSKY notes for up to $12.8 billion of existing WBD debt. The company also disclosed its post-acquisition financial targets, including a formal deleveraging plan and an updated timeline for realizing over $6 billion in synergies.
Key Details
- Debt Offers: Commenced offers for WBD notes, including a cash tender offer up to $2.4B and an exchange offer for new PSKY notes up to $12.8B. Settlement of the offers is conditioned on the closing of the WBD acquisition.
- Financing Plan: Outlined a plan to replace its $49.0B bridge loan commitment with permanent financing, expected to include $39.5B in first-lien and $12.4B in second-lien secured debt.
- Post-Merger Targets: The company communicated a deleveraging plan to reach a net debt to adjusted EBITDA ratio below 3.75x by fiscal year 2028. PSKY expects to achieve over $6B in total synergies, with full run-rate synergies realized by the third year post-closing.