Netflix Refinances Loan for Warner Bros. Bid

Netflix Inc. has refinanced a portion of its $59 billion bridge loan to bolster its $82.7 billion bid for Warner Bros. Discovery Inc.'s studios and streaming assets, including HBO Max, amid an escalating takeover battle with Paramount Skydance Corp. The move, announced in a Securities and Exchange Commission filing on Monday, replaces part of the initial financing with more stable, long-term debt options as the deal advances toward a potential close in the third quarter of 2026.

Under the agreement reached in early December, Netflix will acquire Warner Bros.' studio and streaming businesses for $72 billion in cash and stock, equivalent to $27.75 per share. The transaction follows Warner Bros. Discovery's planned separation of its global networks business, including CNN and TNT, into a standalone publicly traded entity called Discovery Global. Netflix's offer provides shareholders with $23.25 per share in cash plus $4.50 in Netflix stock. The company has secured a $5 billion senior unsecured revolving credit facility and two $10 billion delayed-draw term loans from banks including Wells Fargo, BNP Paribas, and HSBC. These facilities mature at staggered intervals: the revolving...