National Amusements Announces Strategic Investment from BDT & MSD Partners

National Amusements Announces Strategic Investment from BDT & MSD Partners

National Amusements, Inc. (“NAI”), the majority voting shareholder of Paramount Global, today announced that it has entered into an agreement for a $125 million preferred equity investment in NAI by BDT Capital Partners, an affiliate of BDT & MSD Partners, a merchant bank built to serve the distinct needs of family business owners and founders.

The investment will position NAI for sustainable growth and further post-pandemic recovery in its underlying operations as movie theatre attendance continues to increase. This includes strengthening NAI’s balance sheet by enabling it to reduce interest expense and pay down its revolving loan and recent term loan borrowings. Upon termination of those facilities, NAI shares of Paramount Global (PARA, PARAA) which had been pledged to support those loans will be released back to NAI, and obligations to make future pledges under these facilities will be eliminated.

“Our expanded partnership with BDT & MSD reflects our strong belief in Paramount’s ability to deliver value to all shareholders. Paramount has the best assets in the media industry, with an incredible content library and IP spanning all genres and demographics, as well as the #1 broadcast network, the leading free ad-supported streaming television service and the fastest-growing pay streaming platform in the U.S.,” said Shari Redstone, Chair, CEO and President of NAI. “NAI has conviction in Paramount’s strategy and execution, and we remain committed to supporting Paramount as it takes the necessary steps to build on its success and capitalize on the strategic opportunities in our industry.”

“We are pleased to partner with National Amusements in a transaction that supports its stewardship of Paramount Global,” said Byron Trott, Chairman and Co-CEO of BDT & MSD Partners. "Paramount has an incredible legacy, underpinned by its industry-leading content and media assets. We believe strongly in the value creation opportunities ahead for the company and its shareholders.”

The investment is expected to close next week subject to satisfaction of customary closing conditions.

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