The Walt Disney Company nearly $11 billion in a new debt offering. This is in direct response to the current COVID 19 pandemic. The company in a Tuesday regulatory filing disclosed details of its latest return to the debt market via a senior unsecured note offering. The offering, expected to secure proceeds of $10.91 billion after deducting underwriting costs, will include tranches maturing in 2026, 2028, 2031, 2040, 205, and 2060.
On Monday, Disney had a separate filing. CEO Bob Chapek said that the proceeds would be used for general purposes and repayment of debt obligations. The company said the offering was guaranteed by TWDC Enterprises 18 Corp., a Disney subsidiary. Disney said it would use the proceeds in part to repay TWDC.
Moodys Investors Service assigned an A2 rating to the debt raise.“This transaction will add to Disney’s significant liquidity as it will free up revolving debt capacity otherwise assumed set aside to back outstanding commercial paper and near-term maturities, and essentially removes any question that the company has robust liquidity to help carry it through this ‘black swan’ cycle caused by the spread of COVID-19,” analyst Neil Begley said in a statement.
Begley said that the company has $17.5 billion in revolving that has been untapped at this point so far. He also says that Disney as $14.3 billion cash on hand as of March 28th. Stick with us here at the disnisder.com for all news around the wonderful Walt Disney Company.
Source: The Hollywood Reporter