Key Highlights

  • Paramount Skydance Corporation (NASDAQ:PSKY) launched about USD 44.4 billion of senior secured notes on September 28, 2026, and reports say it priced USD 30 billion of first-lien notes, USD 11.4 billion of second-lien notes and a euro tranche of EUR 885 million.
  • Investment-grade bonds drew about USD 109 billion of orders, more than three times the offering size, and underwriters trimmed the bond portion by USD 2 billion to USD 30 billion while raising the loan portion by the same amount.
  • A federal judge approved the company's settlement with 12 state attorneys general on September 30, 2026, and Paramount and Warner Bros. Discovery now expect the roughly USD 110 billion merger to close on October 6.
  • Warner Bros. Discovery shareholders will receive USD 31 per share in cash plus USD 0.00277778 per share for each calendar day after September 30 through closing, and the notes offering is expected to close October 5.

The Bond Sale and Its Pricing

Paramount Skydance Corporation (NASDAQ:PSKY) told investors on September 28 that it intended to offer about USD 44.4 billion of first-lien and second-lien senior secured notes to qualified institutional buyers, with the proceeds helping to fund the Warner Bros. Discovery purchase price and repay debt. The wider package is about USD 52 billion: roughly USD 32 billion of investment-grade bonds, USD 12.4 billion of high-yield bonds and a USD 7.5 billion term loan. Reports on pricing describe eight first-lien maturities from 2028 to 2066, and totals differ by source, so the final prospectus should be checked.

How the Obstacles Cleared

Twelve state attorneys general sued in July to block the deal, and a court order barred closing until the case was resolved. Paramount settled on September 21 with behavioral commitments, including minimum annual film releases, keeping both studio lots through 2031 and extra annual spending on US film production. The Writers Guild also settled, with a USD 17.5 million payment to its health fund and a five-year bar on writer layoffs at CBS News broadcast. Judge Araceli Martinez-Olguin approved the state settlement on September 30, and David Ellison announced Ynon Kreiz as co-CEO of the combined company. Paramount Skydance Corporation (NASDAQ:PSKY) expects closing on October 6.

Leverage and What to Watch

Secured debt of this size raises interest costs before any synergies arrive. The ten-year dollar high-yield bonds were marketed in the low 9% range, while the ten-year Treasury yield stood at 5.17% on September 25. Shares fell 3% on September 29 and sit about 25% below their level at the start of the year, according to published market data. Existing Paramount notes will remain as unsecured obligations after closing. Investors should watch the final notes terms, the closing on October 6, integration costs and the first combined results. Paramount Skydance Corporation (NASDAQ:PSKY) carries the execution risk.

Where Things Stand

The media giant is Paramount Skydance, and it drew USD 109 billion of orders because investors wanted its secured paper once the legal obstacles cleared, even as high yields signal the cost of borrowing on this scale. Paramount Skydance Corporation (NASDAQ:PSKY) now has financing in place and a closing date of October 6. The balance of evidence is positive on execution but cautious on leverage. The next catalysts are the notes closing on October 5 and the merger closing the next day.