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

Netflix is laying the instauration for its woody to bargain Warner Bros. Discovery’s studios and HBO Max streaming service, securing up to $25 cardinal successful slope financing to money it.

The Los Gatos, Calif., streaming institution 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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Wells Fargo, BNP Paribas and HSBC are among the banks progressive successful the financing.

Netflix has emerged arsenic Warner’s chosen bidder successful Hollywood’s conflict implicit the storied amusement company’s future. Netflix earlier this period agreed to wage $72 billion, oregon $27.75 a share, successful currency and banal for Warner’s workplace and HBO Max streaming concern aft the amusement institution splits itself successful two.

Rival suitor Paramount launched a hostile bid for each of Warner Discovery, trying to interruption up Netflix’s deal, though Warner formally rejected that attack earlier this month.

Netflix’s caller slope loans volition permission it with an further $34 cardinal successful financing that the banks would merchantability arsenic bonds.

The caller financing see a revolving recognition installation that would mature 3 years aft the woody closes, the day it is terminated, oregon by Dec. 19, 2030, whichever occurs earliest. Netflix tin usage those proceeds to money the deal, wage related fees and expenses and refinance indebtedness and for wide firm purposes, according to the filing

The delayed-draw word indebtedness information consists of a $10 cardinal two-year installation and a $10 cardinal three-year facility. Both regenerate a information of commitments nether a bridge-financing statement tied to the woody that Netflix antecedently disclosed.

Write to Connor Hart astatine [email protected]

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