Paramount Completes Record $52 Billion Debt Sale for Acquisition
Paramount executed the largest single-day public company debt sale in history to finance its acquisition of Warner Bros. Discovery.
Paramount completed a $52 billion debt sale on Wednesday, the largest single-day transaction by a public company in history. The financing was required to secure the acquisition of Warner Bros. Discovery before a September 30 deadline.
The offering was oversubscribed, with investors placing $150 billion in orders. Citigroup and Bank of America managed the sale, which attracted major firms including Apollo Global Management and Pimco.
Rising interest rates, driven by a Federal Reserve rate hike, increased borrowing costs for the company, with some bonds reaching 9.1%. Paramount would have saved roughly $400 million in annual interest if the sale had occurred months earlier, but legal challenges from several states delayed the merger. Chief Finance Officer Dennis Cinelli acknowledged the higher interest costs but stated the company would rather get the deal done and manage the costs accordingly.
