$PSKY Borrows $52 Billion to Buy Warner Bros. in One of the Largest Debt Deals Ever

Paramount just borrowed $52 billion to buy Warner Bros., one of the largest debt deals ever.
The financing is made up of:
- $30 billion in investment-grade bonds
- $12.4 billion in junk bonds
- About $9.5 billion in loans
Demand weakened at the long end of the curve. Investor orders for Paramount's longest-dated bonds vanished between peak demand and final pricing, and the company lost more than half the book on its 20-, 30-, and 40-year bonds. The bonds slumped once they started trading.
The author noted that the bond market will fund a jumbo deal, but will not lend to a levered media company for 40 years without flinching.