Politics
Banks Get Bids on $49 Billion Paramount Debt Well Before Sale
Key Points
Banks Get Bids on $49 Billion Paramount Debt Well Before Sale Banks have lined up enough investor demand to cover most of the roughly $49 billion debt package backing Paramount Skydance Corp.’s takeover of Warner Bros. Discovery Inc. — long before launching the deal. In what might be described as a pre, pre-marketing process, Wall Street bankers are fielding orders for one of the largest M&A debt raises in recent years, upending the standard syndication format.
Banks Get Bids on $49 Billion Paramount Debt Well Before Sale
Banks have lined up enough investor demand to cover most of the roughly $49 billion debt package backing Paramount Skydance Corp.’s takeover of Warner Bros. Discovery Inc. — long before launching the deal.
In what might be described as a pre, pre-marketing process, Wall Street bankers are fielding orders for one of the largest M&A debt raises in recent years, upending the standard syndication format. The debt package, about $30 billion of investment-grade bonds, $7.5 billion of investment-grade loans and roughly $12 billion of second-lien bonds, targets a wider range of investors than is typical for a leveraged buyout. Borrowers rarely sell high grade and junk debt in combination.