Skydance slides as warrants trade separately; cost to insure debt hits record high

Skydance

14/10/2026 16:02

Updates
** Skydance shares SKYD.N drop 25.9% to $6.87 
** SKYD on Tuesday distributed 470.7 mln warrants to eligible holders, one for each share they own; exercise price is $12 per share, set to expire on October 13, 2036

        ** Buyers of the common stock no longer receive that right, so share price resets to reflect a distribution that now trades on its own

        ** The warrants SKYD_t.N were last trading at $2.37 

        ** Exercising of warrants can also lead to an increase in total number of common shares outstanding
** Skydance corporate bonds have lost around 3 cents on the dollar since October 2, when they started to trade
** The 2033 maturity US69932AAU97=TE last traded down 0.12 cents on the dollar, per Tradeweb data 
** Paramount Skydance completed its blockbuster $110 bln takeover of Warner Bros Discovery on October 6, with new co named Skydance 
** Combined co carries debt of about $80 bln 
** Both Fitch and S&P Global see Skydance's credit rating at "BB", which places it under the "junk" category 
** 5-year credit default swaps (CDS) hit an all-time high of 576 bps, according to S&P Global Market Intelligence data 
** The current levels of CDS imply a default probability of 39.5%, according to LSEG-compiled data 
     

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com))