Warner Bros. Discovery subsidiary borrows $13 billion and €1.717 billion in 7-year term loans to repay a bridge loan

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

On Jun 4, 2026, Discovery Global Holdings (DGH), a wholly owned subsidiary of Warner Bros. Discovery (WBD), entered into a first lien credit agreement, a secured loan contract. It provides for term loans, which are repaid over a set period, of $13 billion in dollars and €1.717 billion in euros, each running 7 years. DGH borrowed both and, with cash from its balance sheet, repaid in full $15 billion of loans under a bridge loan agreement (interim financing) dated Jun 26, 2025. WBD disclosed it in an 8-K, the current report a US-listed company files on a material event, under item 1.01 (a material agreement) and item 2.03 (a new financial obligation).1^,2^,3^,4

At DGH's option, the dollar loans bear interest at Term SOFR, a benchmark dollar rate, plus 2.50% a year or at the Base Rate plus 1.50%. The euro loans bear interest at EURIBOR, the euro benchmark rate, plus 2.50% a year. Both sets mature on Jun 4, 2033, and the dollar loans amortize at 1.00% a year (payable quarterly), meaning scheduled principal repayments. The loans are secured by a lien on substantially all of the assets of WBD, DGH and certain wholly owned domestic subsidiaries, subject to exceptions, and guaranteed by WBD and certain of its wholly owned domestic subsidiaries. The 8-K says the agreement has no financial maintenance covenant, a requirement to keep financial ratios within set limits.5^,6^,7^,8^,9

All loans under the agreement, with accrued interest and fees, may be declared immediately due and payable on certain significant corporate events, including a change of control such as the completion of the previously disclosed proposed acquisition of WBD by Paramount Skydance, or on other customary events of default. WBD is the parent of Warner Bros. Games, which publishes Hogwarts Legacy (developed by Avalanche Software), Mortal Kombat 1 (NetherRealm Studios) and LEGO Batman: Legacy of the Dark Knight (TT Games).10^,11^,12^,13^,14^,15

The bridge loan agreement dates from Jun 26, 2025; on Feb 18, 2026, DGH amended it to extend its maturity to the earlier of Jun 30, 2027 and the date of a spin-off defined in that agreement. On Feb 27, 2026, WBD, Paramount Skydance and a Paramount Skydance subsidiary signed a merger agreement for that acquisition.3^,16^,17^,18

This article rests on the 8-K for the loan terms and on earlier WBD filings, of Feb 18 and Feb 27, 2026, for the background; the credit agreement itself, filed as Exhibit 10.1, is not among the documents we read, so its terms are told as the 8-K summarizes them.19^,16^,18