Citigroup Kicks Off Investor Calls for Paramount's Massive Takeover Debt Sale

Citigroup Inc. is set to begin meetings with loan investors this week as a syndicate of banks prepares to launch one of the largest buyout debt packages on record to finance Paramount Skydance Corp.'s acquisition of Warner Bros. Discovery Inc.

Banks Prepare Massive Debt Offering

Citigroup will host calls with potential investors on Thursday, starting at 10:30 a.m. New York time, according to a Bloomberg report citing a person with knowledge of the matter. These meetings are the first step in selling the debt underwritten by Citigroup, Bank of America Corp., and Apollo Global Management Inc. to fund the deal.

The financing is a complex, multi-tranche package that includes:

• $30 billion in investment-grade bonds
• $7.5 billion in investment-grade loans
• Approximately $12 billion in second-lien bonds

This structure is notable for its rare combination of high-grade and high-yield (junk) debt in a single buyout financing. The offering is designed to attract a broad base of both dollar and euro-denominated investors.

Background on the $110 Billion Takeover

Ad

The debt sale is required to fund Paramount Skydance's $110 billion takeover of Warner Bros. Discovery. The massive deal had been delayed by a series of lawsuits that have since been settled, clearing the path for the acquisition to close.

The underwriting banks had previously lined up significant investor interest before legal challenges put the transaction on hold. With those hurdles now removed, the banks plan to begin selling the debt soon, Bloomberg reported earlier this week.

A Key Test for Credit Markets

The sheer scale and complexity of this debt offering will serve as a significant test of investor appetite in the corporate credit markets. Its successful placement could signal a healthy environment for financing other large-scale mergers and acquisitions.

Market participants will be closely watching the pricing and demand for each portion of the deal, as its hybrid structure requires the banks to appeal to a wide spectrum of credit investors, from conservative funds to those with a higher risk tolerance.