WBD Warner Bros. Discovery, Inc.
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Executive Summary
Warner Bros. Discovery via subsidiary Discovery Global Holdings entered into a $13B USD + €1.717B EUR first lien credit agreement to repay the $15B bridge loan used to fund the pending Paramount Skydance acquisition. The 7-year term loans carry margins of SOFR+250bps (USD) / EURIBOR+250bps (EUR) with no financial maintenance covenants.
Actionable Insight
The takeout of the bridge loan removes a key refinancing risk overhang for WBD equity. The new term loans have no financial maintenance covenants, providing operational flexibility. The spread (SOFR+250bps) is in line with high-yield first-lien secured bank debt pricing for a large-cap media name. Monitor for execution risk on the Paramount Skydance merger and any rating agency actions as the Merger constitutes a Change of Control.
Key Facts
- $13B USD-denominated 7-year term loans (Initial Dollar Term Loans) + €1.717B Euro-denominated 7-year term loans (Initial Euro Term Loans) entered into on June 4, 2026
- Proceeds were used together with cash on hand to repay the full $15B bridge loan from June 2025 that was financing the pending Paramount Skydance acquisition
- Initial Dollar Term Loans bear interest at Term SOFR + 2.50% or Base Rate + 1.50%; Initial Euro Term Loans bear interest at EURIBOR + 2.50%
- Initial Term Loans mature on June 4, 2033; Initial Dollar Term Loans amortize at 1.00% per annum quarterly
- No financial maintenance covenants in the credit agreement
- Obligations are secured by substantially all assets of the company, DGH, and certain domestic subsidiaries on a pari passu basis with the existing revolver
- The Merger (Paramount Skydance acquisition) constitutes a Change of Control under the agreement
Financial Impact
Refinancing of $15B bridge loan with $13B + €1.717B term loan facility and cash; avoids near-term maturity overhang and moves to a longer-dated, less restrictive capital structure
Risk Factors
- Pro forma leverage will likely increase materially post-Merger (if consummated) which could pressure credit ratings
- The Merger constituting a Change of Control could trigger acceleration if not consented to by lenders, though this is standard boilerplate
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-256559 |
| Document: d11897d8k.htm | 0001193125-26-256559 |
| Document: 0001193125-26-256559-index-headers.html | 0001193125-26-256559 |
| Document: 0001193125-26-256559-index.html | 0001193125-26-256559 |
| Document: 0001193125-26-256559.txt | 0001193125-26-256559 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 4, 2026
8d ago
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8-K
| $27.00 $26.24 | ▼ −2.81% | ▼ −0.22% | $26.98 (−0.07%) |
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May 27, 2026
16d ago
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8-K
| $27.14 $27.04 | ▼ −0.37% | ▼ −0.92% | $26.98 (−0.59%) |
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May 19, 2026
24d ago
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8-K
| $27.42 $27.10 | ▼ −1.17% | ▼ −1.36% | $26.98 (−1.60%) |
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May 11, 2026
4w ago
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Court Ruling
| $27.10 awaiting T+1 | awaiting T+1 | — | $26.98 (−0.42%) |
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Apr 30, 2026
6w ago
|
8-K
| $27.05 $26.97 | ▼ −0.30% | ▼ −0.52% | $26.98 (−0.26%) |
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Apr 16, 2026
8w ago
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DEFA14A
| $27.47 $27.42 | ▼ −0.18% | ▲ +0.01% | $26.98 (−1.78%) |
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Mar 30, 2026
10w ago
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Court Ruling
| $27.09 $27.46 | ▲ +1.37% | ▼ −1.52% | $26.98 (−0.41%) |
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Mar 30, 2026
10w ago
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Court Ruling
| $27.09 $27.46 | ▲ +1.37% | ▼ −1.52% | $26.98 (−0.41%) |
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Mar 16, 2026
12w ago
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PREM14A
| $27.64 $27.35 | ▼ −1.05% | ▲ +0.35% | $26.98 (−2.39%) |
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Mar 16, 2026
12w ago
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Insider Cluster
| $27.51 $27.64 | ▼ −0.47% | ▼ −0.20% | $26.98 (+1.93%) |
US Market Status
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