WBD · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

Warner Bros. Discovery, Inc. · 2026-08-06 · Importance 64 · Surprise 42 · From source text

On June 4, 2026, WBD refinanced $15.0 billion of bridge loans with $13.0 billion of seven-year U.S. dollar term loans and €1.717 billion of Euro-denominated term loans. The dollar term loans bear interest at Term SOFR plus 2.50% or the Base Rate plus 1.50%, while the Euro term loans bear interest at EURIBOR plus 2.50%; the loans mature June 4, 2033 and the dollar loans amortize at 1.00% annually. Total debt was $32.4 billion at June 30, 2026, with $30.5 billion classified as noncurrent, and the refinancing remains exposed to floating SOFR and EURIBOR rates and change-of-control provisions tied to the proposed PSKY acquisition.

Key facts

• Initial Dollar Term Loans bear interest at Term SOFR plus 2.50% per annum or Base Rate plus 1.50% per annum; Initial Euro Term Loans bear interest at EURIBOR plus 2.50% per annum; Initial Term Loans mature on June 4, 2033 and Initial Dollar Term Loans amortize at 1.00% per annum payable quarterly. source
• On June 4, 2026 DGH entered into a First Lien Credit Agreement providing for 7-year $13,000 million U.S. dollar-denominated term loans and 7-year €1,717 million Euro-denominated term loans. source
• On June 4, 2026 DGH borrowed the Initial Term Loans and used net proceeds together with cash to repay in full $15,000 million of outstanding loans under the Bridge Loan Agreement. source
• During the year ended December 31, 2025, the Company entered into $2,000 million notional amount of credit contract swaptions which were unwound during the six months ended June 30, 2026 for an immaterial loss. source
• Weighted-average interest rate for term loans with maturities of years as of June 30, 2026: 5.95% and principal outstanding $14,708 million. source
• The Company entered into $1,500 million notional of non-designated interest rate swaps in the first half of 2025 to mitigate secured overnight financing rate changes related to the receivables securitization program. source
• Under Amendment No.1 to the Bridge Loan Agreement, duration fees payable on September 30, 2026 and December 31, 2026 were increased from 0.75% to 1.00% of the principal amount of outstanding loans on such dates, and a new duration fee of 1.00% would be payable on March 31, 2027. source
• The First Lien Credit Agreement does not contain any financial maintenance covenant but contains customary affirmative and negative covenants and may require immediate repayment upon certain significant corporate events including a change of control such as the consummation of the PSKY acquisition. source

Impact estimates