Netflix Lines Up $25 Billion in Bank Financing for Warner Bros. Deal

Netflix said it has secured up to $25 cardinal successful slope financing successful mentation to money its projected acquisition of overmuch of Warner Bros. Discovery.

The streaming elephantine entered into a $5 cardinal elder unsecured revolving recognition installation and 2 elder unsecured delayed-draw term-loan facilities totaling $20 billion, according to a Monday filing with the Securities and Exchange Commission.

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Netflix earlier this period agreed to bargain Warner Bros. for $72 cardinal aft the amusement institution splits its studios and the HBO Max streaming concern from its cablegram networks. Its caller financing volition assistance money the currency considerations of the deal, arsenic good arsenic wage related fees and expenses, refinance indebtedness and for wide firm purposes.

The revolving recognition installation volition mature 3 years aft the Warner Bros. woody closes, 3 years aft the woody is terminated, oregon by Dec. 19, 2030–whichever occurs earliest, according to the filing.

The delayed-draw term-loan facilities dwell of a $10 cardinal two-year installation and a $10 cardinal three-year facility. Netflix whitethorn prepay the loans, oregon trim oregon terminate the unutilized information of the commitments, without penalty, but prepaid amounts whitethorn not beryllium reborrowed, according to the filing.

Both facilities regenerate a information of commitments nether a antecedently disclosed bridge-financing statement tied to the deal.

Netflix bushed retired Paramount and Comcast to bargain Warner Bros., agreeing to wage $27.75 a stock successful currency and banal for the company’s movie workplace and HBO Max streaming concern aft the amusement institution splits itself successful two.

Still, the woody is expected to beryllium investigated by the Justice Department, which has already begun considering however the tie-up would further cement Netflix’s dominance successful the media industry. Other critics of the woody person argued it would ruin Hollywood, prompting executives successful portion to committedness to support movies successful theaters.

Paramount had accused Warner Bros. of unfairly favoring Netflix’s deal. The institution went hostile and made an unsolicited all-cash bid for Warner Bros. past week, though the institution aboriginal recommended that shareholders cull the offer.

Write to Connor Hart astatine [email protected]

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