BUZZ-Skydance's debt insurance cost hits a record high after acquiring Warner Bros.

October 14 - ** Since trading began on October 2, Skydance corporate bonds have dropped approximately 3 cents per dollar in price.

** According to Tradeweb data, the latest trade price for the 2031-maturing US69932AAT25=TE bond is 97.94 cents.

** On October 6, Paramount-Skydance completed its blockbuster $110 billion acquisition of Warner Bros Discovery, and the newly merged company was named Skydance (link).

** The combined company's total debt stands at about $80 billion.

** Both Fitch and S&P Global have rated Skydance's credit as “BB,” placing it in the “junk” category.

** According to S&P Global Market Intelligence, the 5-year credit default swaps (CDS) hit a historic peak of 576 basis points.

** Based on data compiled by London Stock Exchange Group (LSEG), the current CDS level implies a default probability of 39.5%

** The stock SKYD.N was quoted at $7.60 in pre-market trading.

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