Paramount Skydance Corp. is set to raise $42.4 billion through investment-grade and high-yield bond offerings to fund its buyout of Warner Bros. Discovery Inc. The US media giant launched an eight-part $30 billion US dollar investment-grade bond offering on Wednesday, according to people familiar with the matter. The biggest tranche is a $6.5 billion bond maturing in 2031. The company is also selling $11.4 billion of US dollar junk bonds in three parts, with a $6 billion five-year note making up the biggest tranche, as well as a €885 million ($1 billion) euro-denominated note due in five years.

The yield premium investors will receive over Treasuries on the firm’s proposed high-grade bonds narrowed across all eight tranches. Pricing on the longest maturity, a security due in 2066, tightened by about 0.35 percentage point to 3.3 percentage points above the benchmark. Three of the Paramount bonds to be sold are poised to yield at least 8%. Just two US high-grade notes priced this year with such yields.

On Tuesday, the US media giant trimmed the size of the investment-grade note sale by $2 billion, raising the loan portion of the funding by the same amount. The dollar-denominated loan will now be $8.5 billion, versus initial plans of $6.5 billion. The euro loan remains the equivalent of $1 billion.