Paramount Bonds Slump Following Record $52B Debt Sale for Merger

Key Facts

1David Ellison’s media company sold $52bn in debt to fund a $110bn leveraged buyout of Paramount.

2The new debt issuance received an investment-grade credit rating, albeit at the lowest possible tier.

David Ellison’s media company sold $52 billion in debt to fund a $110 billion leveraged buyout of Paramount. The Financial Times reported that the new debt issuance received an investment-grade credit rating, though it was positioned at the lowest possible tier.

Paramount's bonds experienced a significant sell-off in secondary markets following the record-breaking offering. The massive scale of the debt and the low-tier investment grade rating have pressured bond prices as investors digest the heavy debt load associated with the merger.