Paramount Skydance Corporation (NASDAQ:PSKY) announced that Warner Bros. Discovery has received the required consents for proposed amendments to indentures governing approximately $17.2 billion in senior unsecured notes.
With a market cap of $11.6 billion, Paramount carries total debt of $16.6 billion. Its stock trades at $10.37, down 34% over the past six months.
Supplemental indentures effectuating the amendments were executed on Monday and became effective immediately, but will only become operative upon the payment date of the consent solicitations, expected around Thursday.
The consent solicitations were made in connection with Paramount's proposed acquisition of Warner Bros. Discovery. Approximately $12.1 billion and €0.6 billion of WBD notes will be eligible to participate in exchange offers, while approximately $2.4 billion will be eligible for tender offers.
The series of notes receiving consents include various maturities from 2027 to 2052, with interest rates between 3.625% and 6.350%. An additional $2.5 billion of WBD's unsecured notes are not subject to the offers, and approximately $0.1 billion of eligible notes did not receive valid consents.
Holders of WBD notes were required to deliver consents in the consent solicitations to participate in the exchange and tender offers. The offers are being made solely by Paramount and not by Warner Bros. Discovery or its issuers.
The exchange offers and tender offers will expire at 5:00 p.m. New York time on June 17, 2026, subject to extension. Settlement is conditioned on the closing of the acquisition. Paramount stated it anticipates extending the expiration date until the consummation of the acquisition.
BofA Securities and Citigroup are serving as dealer managers. Global Bondholder Services Corporation is acting as exchange agent and information agent.
