Paramount Skydance Corp. completed a record-breaking $52 billion debt sale to finance its acquisition of Warner Bros. Discovery. The acquisition is valued at $110 billion.
The financing package, one of the largest in recent memory, included loans and bonds sold across multiple markets. Completing the sale clears the way for the merger to close by early October.
The sale came amid a turbulent bond market and rising interest rates, making the financing more expensive than it would have been months earlier. Interest rates on the debt reached as high as 9.1%. The added interest could cost Paramount between $250 million and $500 million a year.
Despite the high cost, investor demand was strong. Orders reportedly reached nearly three times the amount of debt available.