WBD Terminates Agreement, Incurs New Debt

Ticker: WBD · Form: 8-K · Filed: Oct 9, 2024 · CIK: 1437107

Warner Bros. Discovery, Inc. 8-K Filing Summary
FieldDetail
CompanyWarner Bros. Discovery, Inc. (WBD)
Form Type8-K
Filed DateOct 9, 2024
Risk Levelmedium
Pages4
Reading Time5 min
Key Dollar Amounts$6.0 billion, $150.0 million, $1.0 billion, $2.0 billion
Sentimentneutral

Sentiment: neutral

Topics: debt-issuance, agreement-termination, financial-obligation

Related Tickers: WBD

TL;DR

WBD just terminated a deal and took on new debt. Watch closely.

AI Summary

Warner Bros. Discovery, Inc. announced on October 4, 2024, the termination of a material definitive agreement and the creation of a direct financial obligation. The company also filed financial statements and exhibits related to these events.

Why It Matters

This filing indicates a significant change in Warner Bros. Discovery's contractual and financial obligations, potentially impacting its future operations and financial structure.

Risk Assessment

Risk Level: medium — The termination of a material agreement and the creation of new financial obligations suggest potential strategic shifts or financial pressures for the company.

Key Numbers

  • 4.302% — Senior Notes Due 2030 Interest Rate (Indicates a specific financial obligation.)
  • 4.693% — Senior Notes Due 2030 Interest Rate (Indicates another specific financial obligation.)

Key Players & Entities

  • Warner Bros. Discovery, Inc. (company) — Registrant
  • October 4, 2024 (date) — Date of earliest event reported
  • 2030 (date) — Maturity year for Senior Notes

FAQ

What was the material definitive agreement that was terminated?

The filing does not specify the details of the terminated material definitive agreement.

What is the nature of the new direct financial obligation?

The filing indicates the creation of a direct financial obligation, specifically mentioning Senior Notes due in 2030 with interest rates of 4.302% and 4.693%.

What is the total amount of the new financial obligation?

The filing does not explicitly state the total dollar amount of the new financial obligation, but it references specific senior notes.

Why was the material definitive agreement terminated?

The filing does not provide a reason for the termination of the material definitive agreement.

What are the implications of these events for Warner Bros. Discovery's financial health?

The filing suggests a change in the company's financial structure due to the termination of an agreement and the incurrence of new debt, but specific implications require further analysis.

Filing Stats: 1,326 words · 5 min read · ~4 pages · Grade level 11.5 · Accepted 2024-10-09 16:28:50

Key Financial Figures

  • $6.0 billion — Credit Agreement replaced the existing $6.0 billion multicurrency revolving credit agreemen
  • $150.0 million — illion. The Credit Agreement includes a $150.0 million sublimit for the issuance of standby le
  • $1.0 billion — e to time up to an aggregate additional $1.0 billion from the lenders, who may elect to make
  • $2.0 billion — with the Credit Agreement) in excess of $2.0 billion is netted from the numerator of that ra

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On October 4, 2024, Discovery Communications, LLC ("DCL") entered into a multicurrency revolving credit agreement (the "Credit Agreement") among DCL, Warner Bros. Discovery, Inc. (formerly known as Discovery, Inc.) ("WBD"), as facility guarantor, certain wholly-owned subsidiaries of WBD, as borrowers (each a "Designated Borrower" and, together with DCL, the "Borrowers"), Scripps Networks Interactive, Inc. ("Scripps") and WarnerMedia Holdings, Inc. (formerly known as Magallanes, Inc.) ("WMH"), as subsidiary guarantors, the lenders from time to time party thereto (the "Lenders") and Bank of America, N.A., as administrative agent, swing line lender and L/C issuer. The Credit Agreement replaced the existing $6.0 billion multicurrency revolving credit agreement, dated as of June 9, 2021 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Existing Credit Agreement"), among DCL, certain wholly-owned subsidiaries of DCL, WBD, Scripps, WMH, the lenders from time to time party thereto, and Bank of America, N.A., as administrative agent, swing line lender and L/C issuer. The Credit Agreement provides for a senior revolving credit facility with aggregate commitments of $6.0 billion. The Credit Agreement includes a $150.0 million sublimit for the issuance of standby letters of credit. Under the Credit Agreement, DCL may also request an additional increase of the aggregate commitments from time to time up to an aggregate additional $1.0 billion from the lenders, who may elect to make such increase available, upon the satisfaction of certain conditions. The obligations of the Borrowers under the Credit Agreement are unsecured and are guaranteed by WBD, Scripps and WMH. Proceeds from the senior revolving credit facility may be used for general corporate purposes. The senior revolving credit facility permits the Borrowers to borrow in U.S. dollars, certain specified foreign

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement On October 4, 2024, in connection with the execution of the Credit Agreement described in Item 1.01 above, DCL and WBD terminated the Existing Credit Agreement. Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference. -3-

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 10.1 Credit Agreement, dated as of October 4, 2024, among Discovery Communications, LLC, Warner Bros. Discovery, Inc. ("WBD"), as facility guarantor, certain wholly-owned subsidiaries of WBD, as borrowers, Scripps Networks Interactive, Inc. and WarnerMedia Holdings, Inc., as subsidiary guarantors, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent, swing line lender and L/C issuer.* 101 Inline XBRL Instance Document - the instance document does not appear in the Interactive Date File because its XBRL tags are embedded within the Inline XBRL document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * Exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K and will be supplementally provided to the SEC upon request. -4-

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 9, 2024 By: /s/ Gunnar Wiedenfels Gunnar Wiedenfels Chief Financial Officer -5-

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