The Walt Disney Company has taken on a $5 billion line of credit with Citybank listed as the “designated agent”, according to SEC filings. With this $5 billion, Disney has taken on over $12 billion of debt since late March.
- The Walt Disney Company Raises $6 Billion in Debt Offering After Warning Investors of Uncertainty Due to Coronavirus (COVID-19) Pandemic
- Disney Raises $1.3 Billion in New Debt
This recent $5 billion line of credit is different from the other two debt offerings in that it is a relatively short term length, just a year with the option of extending for another year with lender approval. Other debt obtained in past weeks has longer maturity, often decades, not months.
With such a short term on this debt, it’s likely that this debt is to offset costs during the COVID-19 closures, whereas some of the longer term debt might be a restructuring of some of the Company’s $38 billion of long-term debt that was carried over from 2019 and before.
The Disney theme parks remain closed indefinitely, with recent statements from the California governor throwing uncertainty on a reopening of Disneyland before the end of the summer.
As always, keep checking back with us here at BlogMickey.com for the latest Disney Parks news and photos. We’ll continue to bring you news and photos, where possible, through the Disney Parks closure due to Coronavirus (COVID-19) and will resume our normal coverage once the parks reopen to guests on July 11th!