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Paramount Global, a prominent player in the media industry with a market capitalization of $8.4 billion, has modified the terms of its existing credit agreement, according to a recent 8-K filing with the U.S. Securities and Exchange Commission. The amendment, signed on Monday, May 12, 2025, involves Paramount, several lending banks, and JPMorgan Chase (NYSE:JPM) Bank, N.A., serving as the administrative agent. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates.
The changes to the credit agreement include an increase in the cap on unrestricted cash and cash equivalents that can be netted against consolidated indebtedness, raising it from $1.5 billion to $3.0 billion. This increase was initially agreed upon in a previous amendment but was contingent on a future operative date. InvestingPro data shows the company maintains strong liquidity with a current ratio of 1.29, indicating sufficient assets to cover short-term obligations.
Additionally, the definition of Consolidated EBITDA has been revised to incorporate an add-back for cash items related to restructuring, litigation reserves, and losses on business disposals. This add-back is capped at 15% of Consolidated EBITDA after the adjustment. For context, Paramount’s EBITDA stands at $2.62 billion for the last twelve months, while managing a total debt of $15.5 billion. Get deeper insights into Paramount’s financial health metrics and more with InvestingPro, which offers over 30 additional financial metrics and exclusive analysis.
This credit agreement, initially filed on January 23, 2020, has undergone several amendments, with the most recent ones filed with the SEC on various dates, including December 9, 2021, February 14, 2022, March 3, 2023, and August 1, 2024.
The financial institutions involved in this amendment have provided various banking and financial advisory services to Paramount and its subsidiaries, for which they have received customary fees and commissions.
The details of the amendment are fully disclosed in the attached Exhibit 10.1 of the 8-K filing. This filing is based on a press release statement and offers an overview of the recent changes to Paramount Global’s credit agreement.
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