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Citigroup Sets Paramount Loan Calls for Debt Sale

Bloomberg Markets •
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Citigroup Inc. will kick off meetings with loan investors on Thursday for Paramount Skydance Corp. as banks prepare to sell debt to fund its takeover of Warner Bros. Discovery Inc. The meetings will kick off at 10:30 a.m. New York time, according to a person with knowledge of the matter, who asked not to be identified because they’re not authorized to speak publicly.

Citigroup, along with Bank of America Corp. and Apollo Global Management Inc. underwrote one of the largest buyout debt packages on record earlier this year to fund the takeover, and lined up significant investor demand before the deal ground to a halt amid the threat of legal proceedings.

With the takeover now cleared to close after the company settled a series of lawsuits that had held up the $110 billion acquisition, bankers plan to start selling the debt soon, Bloomberg reported earlier this week. The package includes about $30 billion of investment-grade bonds, $7.5 billion of investment-grade loans and roughly $12 billion of second-lien bonds, targeting a wider range of dollar and euro investors than is typical for a leveraged buyout. Borrowers rarely sell a combination of high grade and junk debt.