Largest term loan B since 2007
Warner Bros. Discovery has raised $15 billion in the largest term loan B deal since 2007 – and the second largest deal of this type ever.
Sold to CLOs, private credit, pension funds
Term loan B (TLB) deals are senior secured syndicated loans that are funded by non-bank institutional investors (like CLO funds, pension funds and hedge funds).
The only larger term loan B deal was the $16.5 billion transaction by Vistra Energy in 2007.
Multi-currency: $13 billion USD and and €1.7 billion euro
The Warner Bros. Deal was structured as a $13 billion USD loan and a €1.7 billion euro loan.
The deal priced at SOFR + 250bps with an issue price of 99.75 for the US dollar loan, and EURIBOR + 250bps with an issue price of also 99.75 for the euro loan.. The deal was reportedly over 2x subscribed – with an order book of over $30 billion.
Refinances bridge loan ahead of takeover by Paramount Skydance
The proceeds will refinance a bridge loan that Warner Bros. Discovery raised last year – before its $110 billion takeover by Paramount Skydance closes (targeted to close in Q3 2026 if US and European regulators give the deal the go ahead).
Investor demand for Warner Bros.’ term loan was very high – allowing the deal to be upsized from around $10 billion.