Paramount raised $52B through loans and bonds to fund the merger, including the largest high-yield bond offering in history and a $32B investment-grade sale. Despite initial investor demand of $109B, bonds began slumping immediately after trading opened on Oct 1. Co-CEO Ynon Kreiz must now cut $6B in costs over the next three years to service the new debt load.
Tuesday, October 20, 2026
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Paramount Junk Bonds Plunge to 77 Cents After Fitch Downgrade
Business14 days ago
Borrowing costs for the company that acquired Warner Bros. Discovery have soared as lenders dump its newly issued debt. The combined entity's securities have fallen 10.6% since January, with some tranches now trading at a record low of 77 cents on the dollar. This decline follows a credit rating cut by Fitch, which cited materially higher leverage and execution risks related to the integration of the two studios.
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