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Paramount’s Monster Debt Deal Offers Few Safeguards to Investors

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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.
Paramount (ORG) Investors Investing Paramount’s (ORG) David Ellison’s (PERSON) Warner Bros. Discovery Inc. (ORG) Ellison (PERSON) Paramount Skydance Corp. (ORG)
Originally published by Bloomberg Markets Read original →