"Netflix Inc. has lined up $59 billion of financing from Wall Street banks to help support its planned acquisition of Warner Bros. Discovery Inc., which would make it one of the largest ever loans of its kind. Wells Fargo & Co., BNP Paribas SA and HSBC Plc are providing the unsecured bridge loan, according to a statement Friday, a type of financing that is typically replaced with more permanent debt such as corporate bonds."
"Under the deal announced Friday, Warner Bros. shareholders will receive $27.75 a share in cash and stock in Netflix. The total equity value of the deal is $72 billion, while the enterprise value of the deal is about $82.7 billion. Bridge loans are a crucial step for banks in building relationships with companies to win higher-paying mandates down the road."
Netflix secured $59 billion of financing from Wall Street banks to support a planned acquisition of Warner Bros. Discovery. Wells Fargo, BNP Paribas and HSBC are supplying an unsecured bridge loan, a temporary form of financing typically replaced by longer-term debt such as corporate bonds. Warner Bros. shareholders will receive $27.75 per share in cash and stock in Netflix. The transaction carries a $72 billion equity value and about $82.7 billion enterprise value. Bridge loans help banks build client relationships and pursue higher-paying mandates, and a $59 billion bridge would rank among the largest of its kind.
Read at Fortune
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