WarnerMedia to repay term loan borrowings via new senior notes

By Marisa Wong

Los Angeles, March 6 – WarnerMedia Holdings, Inc. intends to repay a portion of borrowings outstanding under its term loan facility using proceeds from an offering of new senior notes due 2026 guaranteed by Warner Bros. Discovery, Inc., according to a 424B3 filing with the Securities and Exchange Commission.

Borrowings under the term loan bear interest at a floating rate plus a margin that varies based on credit ratings. The interest rate (including the applicable margin) as of Feb. 27 was 6.00986%.

Proceeds of the term loan were used in connection with the financing of Discovery, Inc.’s acquisition of the WarnerMedia segment of AT&T Inc. After the merger, Discovery changed its name to Warner Bros. Discovery.

Affiliates of some underwriters for the new notes are lenders under the term loan, and, as a result, will receive at least 5% of the net proceeds of the notes offering.

JPMorgan Chase Bank, NA is administrative agent for the term loan.

Warner Bros. Discovery is a mass media and entertainment conglomerate based in New York.

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