Discovery agrees up to US$9.6bn loan for Scripps buy
Discovery Communications has secured committed financing from Goldman Sachs to help pay for its purchase of Scripps Networks, according to a filing on Monday.
Goldman will provide up to US$9.6bn through a 364-day senior unsecured bridge facility, the filing said. Bridge loans are usually paid down with bonds at a later stage.
Discovery is rated investment grade BBB- by S&P, while Scripps is rated Baa3/BBB/BBB+. The companies said the deal is expected to close in early 2018.
Discovery said on Sunday it was buying Scripps Networks Interactive for US$14.6bn.
The acquisition brings together lifestyle channels from Scripps, such as HGTV, Travel Channel and Food Network, with Discovery’s Animal Planet and Discovery Channel.