P.M. BRIEFING : 7 Banks Aid Paramount Time Bid

Paramount Communications Inc. announced today that seven banks have agreed to serve as co-agents in the syndicate being formed to finance the company’s $12.2-billion tender offer for Time Inc.

The syndicate of banks will provide 90% of the financing for the $200-a-share unsolicited offer. Paramount has said the syndicate would provide $14 billion of the $15.6 billion estimated financing costs, while the remaining $1.6 billion is to raised through the sale of debt securities.

The lack of financing commitments for Paramount’s bid is one of the objections raised by Time to the unwanted offer. Today’s announcement does not mean Paramount has obtained the commitments, but it is a step toward satisfying that condition.

Time is trying to preserve a merger with Warner Communications Inc. and fight the Paramount bid.