WarnerBros. Discovery Secures Record $15 Billion Leveraged Loan in Landmark Paramount Skydance Merger

Warner Bros. Discovery this week finalized a $15 billion leveraged loan facility, marking the largest such transaction in the leveraged loan market since the global financial crisis.

The transaction positions WBD as the second-largest TLB syndication ever, trailing only the $16.45 billion TXU financing in 2007. It represents the largest post‑crisis leveraged loan deal by total facility size ($15 billion) and by the U.S. dollar tranche ($13 billion), surpassing Broadcom’s 2015 issuance.

The U.S. dollar tranche totals $13 billion, while the euro component is €1.717 billion. Final pricing for the seven‑year facilities was set at a spread of S/E+250 basis points with a 99.75% OID, tighter than the initial guidance of S/E+275‑300 at 99.

The deal arrives during a period of limited M&A supply, boosting market volumes significantly. In May, U.S. institutional loan issuance from LBO and M&A activity reached $17.7 billion, with WBD contributing roughly 73% of that total. Corporate M&A volume surged to $15.1 billion in May, the highest monthly figure since January 2020.

Beyond providing fresh supply to a constrained market, the transaction was upsized from an initial $5 billion U.S. and €1 billion euro component. Investor appetite is shifting toward higher‑quality borrowers; as of May 26, 63% of BB‑rated loans in the Morningstar LSTA US Leveraged Loan Index were priced at par or above, a level not seen since 2026.

The transaction underscores renewed activity among speculative‑grade issuers, with B+ and B‑rated companies seeing increased portions of loans priced at par or higher. Recent months have witnessed significant refinancing and repricing activity, totaling $50.5 billion of term loans in May alone.

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