Paramount Skydance has launched a syndication for a proposed $7.5 billion senior secured term loan as it works to assemble the financing package for its proposed acquisition of Warner Bros Discovery, according to a Reuters report. The latest debt offering comes as Paramount Skydance moves ahead with plans to fund one of the biggest potential transactions in the US media and entertainment industry.

The loan, structured as an incremental Term B facility, remains subject to market conditions and other customary closing conditions. Paramount Skydance is also planning to raise around $44.4 billion in additional secured debt as part of the broader financing package for the transaction.

According to Reuters, proceeds from the new debt, together with cash on hand and previously announced equity financing, will be used to fund the acquisition and repay a portion of Paramount Skydance’s existing debt. Following completion of the proposed transaction, the combined company is expected to carry around $80 billion in debt, Reuters reported.

The latest financing move comes days after Paramount reached settlements with a group of US states led by California and the Writers Guild of America over the proposed transaction. The settlements removed key domestic legal hurdles facing the deal, which would bring Warner Bros Discovery’s film and television assets under Paramount Skydance.

Under the settlements, Paramount agreed to increase film production in the US and establish an editorial-independence board overseeing CBS and CNN. The arrangements also addressed concerns over a potential forced sale of assets, including CNN and certain film franchises, according to media reports.

The proposed transaction would combine two major Hollywood businesses and their extensive film and television portfolios, potentially reshaping the US media and entertainment landscape. The deal comes amid continued consolidation across the sector, with companies seeking greater scale across film, television and distribution.

California and 11 other US states filed a lawsuit in July seeking to block Paramount’s acquisition of Warner Bros Discovery. The states argued that the combination could reduce competition across the film and television industries, raising concerns about its potential impact on movie theatres, pay-TV distributors, consumers and workers.

The states also raised concerns about the combined company’s bargaining power in film distribution and cable television and questioned whether commitments offered by Paramount would be sufficient to address the competition issues surrounding the transaction. Paramount, meanwhile, has argued that the deal would strengthen its ability to invest in film production.