Politics
Paramount’s Monster Debt Deal Offers Few Safeguards to Investors
Key Points
Investing Paramount’s Monster Debt Deal Offers Few Safeguards to Investors Bond investors backing David Ellison’s audacious $110 billion takeover of Warner Bros. Discovery Inc. are making a bold bet of their own — lending tens of billions of dollars while forgoing many of the legal safeguards typical in debt-laden buyouts. The risk stems from how Ellison’s Paramount Skydance Corp. structured its $52 billion funding package. It took the unusual step of issuing investment-grade debt, including...
Investing
Paramount’s Monster Debt Deal Offers Few Safeguards to Investors
Bond investors backing David Ellison’s audacious $110 billion takeover of Warner Bros. Discovery Inc. are making a bold bet of their own — lending tens of billions of dollars while forgoing many of the legal safeguards typical in debt-laden buyouts.
The risk stems from how Ellison’s Paramount Skydance Corp. structured its $52 billion funding package. It took the unusual step of issuing investment-grade debt, including $30 billion of bonds, alongside the riskier speculative-grade paper that often backs big buyouts.