Discovery Global Holdings, the financing arm of Warner Bros. Discovery, has closed new credit facilities consisting of $13 billion in dollar-denominated term loans and 1.72 billion in euro-denominated term loans, both with seven-year maturities. The company applied the gross proceeds from these new facilities, together with existing cash on hand, to fully repay $15 billion of outstanding obligations under a non-investment grade leveraged bridge loan agreement dated June 26, 2025.
The new dollar term loans offer the borrower an interest rate alternative: either Term SOFR plus 2.50% per annum or a base rate plus 1.50% per annum. The euro tranche is priced at the EURIBOR screen rate plus 2.50% per year. The dollar loans carry a stated maturity date of June 4, 2033, and the facility features an amortization schedule requiring annual principal repayments at a rate of 1.00% per year.
Bank roles in the deal are split across JPMorgan entities. JPMorgan Chase is named as the U.S. administrative agent and collateral agent for the transaction, while JPMorgan SE is designated as the non-U.S. administrative agent.
The move replaces the previously outstanding bridge financing with longer-dated term facilities, funded in part by the new loans and in part by Discovery Global Holdings existing liquidity. The replacement was executed in full, extinguishing the $15 billion balance of the earlier leveraged bridge loan agreement dated June 26, 2025.
Transaction details
- New term loans: $13.0 billion (USD) and 1.72 billion (EUR), seven-year term
- Use of proceeds: combined with cash to repay $15.0 billion outstanding on a June 26, 2025 non-investment grade leveraged bridge loan
- Dollar loan pricing: Term SOFR + 2.50% or base rate + 1.50%; maturity June 4, 2033; 1.00% annual amortization
- Euro loan pricing: EURIBOR + 2.50% per year
- Administrative agents: JPMorgan Chase (U.S. administrative and collateral agent); JPMorgan SE (non-U.S. administrative agent)
The financing package establishes the contractual interest and repayment framework for Discovery Global Holdings borrowings under the new term facilities and completes the paydown of the prior bridge debt using the proceeds and available cash.