Warner Bros. Discovery Shares Soar 9.98% on $14.6B Debt Restructuring

On June 9, 2025, Warner Bros. Discovery (WBD) shares surged by 9.98% in pre-market trading, reflecting significant investor optimism and market confidence in the company's strategic initiatives.

Warner Bros. Discovery has launched a substantial $14.6 billion tender offer to purchase a significant portion of its outstanding notes and debentures. This move is part of a broader debt restructuring effort aimed at optimizing the company's capital structure and reducing interest expenses. The offer includes multiple pools of notes with varying tender caps and priority levels, providing flexibility in managing the debt profile.

The tender offer is accompanied by consent solicitations for certain amendments to the indentures, which suggests that WBD is seeking greater financial flexibility. By repurchasing higher-coupon debt, the company aims to reduce its interest expense burden while potentially extending its maturity profile through new issuance. This initiative is strategically designed to give WBD maximum flexibility in restructuring its debt profile, with different pool caps and acceptance priority levels.

The company is offering premiums to incentivize early participation, with additional consent payments for noteholders who agree to the proposed amendments by June 13, 2025. This tender offer represents a significant liability management exercise that will reshape WBD's capital structure, demonstrating management's focus on optimizing the company's financial position amid the evolving streaming landscape and competitive pressures in media.