Paramount Launches $44.4 Billion Bond Sale for Warner Bros Deal

Paramount is launching a $44.4 billion bond sale to fund its $110 billion acquisition of Warner Bros. The financing package, managed by Bank of America Corp. and Citigroup Inc., includes approximately $32 billion in investment-grade debt and $12.4 billion in high-yield junk bonds, alongside $7.5 billion in loans. The junk-bond portion is expected to be the largest corporate high-yield bond deal on record.

The financing process faced previous delays due to lawsuits from the Writers Guild and 12 state attorneys general, both of which were settled last week. Paramount now aims to price the bonds and loans by Wednesday to avoid paying Warner Bros. shareholders $7 million per day in penalties if the takeover is not completed by October.

The acquisition follows a bidding war between Paramount and Netflix Inc. The deal has already received approval from Warner Bros. shareholders and the United States Department of Justice, which granted regulatory clearance in June.