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National Amusements, the holding company of the Redstone family and parent company of Paramount Global (NASDAQ: PARA), agreed to make a deal with lenders to refinance some of its debt.
National Amusements paid off 20% of the outstanding loan, about $250 million, to its creditors, the WSJ reported, citing people familiar with the matter. The parent company of film studios Paramount and television network CBS must pay off another 15% in March. The creditors receive higher interest and collateral on the loan.
The deal with lenders comes after the WSJ reported in July that National Amusements was in talks with creditors to renegotiate some of its debt after the disclosure of an annual report raised going concern risks.
NAI owns nearly 80% of Paramount’s voting stock.
“Our business continues to go from strength to strength thanks to the post-pandemic recovery in moviegoing; we have strong assets and we are in an improved financial position, including reducing our debt,” National Amusements said in a statement to the WSJ.