Sept 24 (Reuters) - Paramount Skydance PSKY.O said on Thursday it has launched a syndication for a proposed $7.5 billion senior secured term loan, part of a broader financing package to fund its acquisition of Warner Bros Discovery WBD.O.
The loan launch comes days after Paramount settled litigation with a California-led group of states and the Writers Guild of America over its $110 billion deal for Warner Bros Discovery, clearing final domestic hurdles for an acquisition that could reshape Hollywood.
Here are more details:
Paramount is seeking to raise the $7.5 billion incremental term B facility, subject to market and other conditions.
The company also intends to raise about $44.4 billion of additional secured debt, in addition to the proposed term loan and previously announced financings.
Paramount said it would use the proceeds, along with cash on hand and prior equity financing, to fund the Warner Bros Discovery purchase and repay some of its existing debt.
The combined company is expected to have about $80 billion in debt after the deal closes.
Paramount agreed to increase U.S. film production and establish an editorial-independence board for CBS and CNN, avoiding a forced sale of assets including CNN and its film franchises.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Shailesh Kuber)