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Bond Market News
Netflix Refinances Part of $59bn Bridge Loan; Paramount Strengthens Its WBD’s Bid
December 23, 2025
Netflix has refinanced a significant portion of the $59bn bridge loan arranged to support its acquisition of Warner Bros Discovery (WBD), replacing it with cheaper and longer-dated funding and strengthening the overall financing package. The company secured a $5bn revolving credit facility (RCF) alongside two delayed-draw term loans of $10bn each, reducing the remaining bridge facility to $34bn, which is yet to be syndicated. Warner Bros. had advised shareholders to reject Paramount’s proposal, calling it inferior and highlighting concerns around the riskiness of its financing, while reaffirming support for the Netflix deal. Netflix is expected to further refinance the bridge loan through capital markets, supported by its investment-grade credit rating (rated A by S&P).
Meanwhile, Paramount Skydance strengthened its hostile bid for WBD by securing an irrevocable personal guarantee from Larry Ellison, putting his $246bn fortune behind $40.4bn of equity financing. The move aims to address Warner Bros.’ key concern that Paramount’s earlier offer relied on a revocable family trust, which the board had cited as a major risk. Paramount has also raised its regulatory reverse termination fee to $5.8bn (from $5bn) and highlighted greater operational flexibility in its amended merger terms. Warner Bros. confirmed that it will review Paramount’s revised proposal without changing its stance. However, analysts note that even with Ellison’s backing, Paramount’s $30/share offer still appears inferior on value and risk, given its heavier leverage and sub-investment-grade credit profile (rated BB+ by S&P). Paramount extended the expiration date of its tender offer to WBD’s shareholders to 21 January 2026.
Netflix’s bonds traded stable with its 4.875% 2030s at 102.6, yielding 4.2%. WBD’s 4.279% 2032s also traded stable at 89.4 yielding 6.4%.
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