"The latest came from Paramount Skydance Corp. as it lined up as much as $54 billion of financing from Wall Street's biggest firms to help support its $108 billion hostile bid for Warner Bros., just days after the company agreed to a deal with Netflix Inc. Loans of this size have been few and far between over the past couple of years amid subdued acquisition activity."
"Just late last week, Netflix lined up $59 billion of unsecured financing from Wells Fargo & Co., BNP Paribas SA and HSBC Plc in another bridge loan for its own bid for part of Warner Bros. Such bridge loans, a type of facility that's usually replaced with permanent financing like bonds, are a crucial step for banks in building relationships with companies to win higher-paying mandates down the road."
Two multi-billion-dollar debt deals were arranged within days to support rival bids for Warner Bros. Paramount Skydance secured up to $54 billion from major banks to back a $108 billion hostile offer for the entire company. Netflix obtained $59 billion of unsecured bridge financing to support a $72 billion proposal for the studios and streaming business. Major lenders including Bank of America, Citigroup, Apollo, Wells Fargo, BNP Paribas and HSBC participated. The deals reflect a resurgence in large loans amid higher M&A activity and demand for financing related to data-center buildouts for artificial intelligence. Equity backstops and private-equity participants are involved in the financings.
Read at Fortune
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