Credit: DisneyThe Walt Disney Company has entered a new $5 billion credit agreement with Citibank. Here’s everything we know so far.
News Breakdown
- A new report by Seeking Alpha states that on Friday, April 10, Disney entered a 364-day credit agreement with Citibank for up to $5 billion.
- The new filing — which you can read here — states that the interest rate spreads based on The Walt Disney Company’s public debt rating that ranges between 0.875% and 1.5% for eurocurrency, and 0-0.5% for base rate borrowings. Disney also has the option to extend the maturity beyond April 9, 2021 for another year if the lender’s consent.
- Disney’s new credit agreement with Citibank is very similar to the March 6 agreement.
- This marks a total of over $12 billion in new debt for The Walt Disney Company in the past month since the U.S. theme parks temporarily closed their gates.
What’s Happening At The Walt Disney Company
Disney’s new debt agreement with Citibank is the latest news regarding what’s going on at The Walt Disney Company this week.
In the past 24 hours, we found out that Executive Chairman Bob Iger has taken over some of the CEO responsibilities of current Chief Executive Officer Bob Chapek in order to help Disney during this time.
The Walt Disney Company has also filed for debt offerings since the theme parks closed last month. First, Disney filed for a nearly $6 billion debt offering in the U.S., and a week later the company filed for an additional $1.3 billion in new debt in Canada. Both instances were to help the company stay afloat during these unfortunate times.
At the time of this article’s publication, the Disney Parks are closed until further notice, several Disney film releases have been pushed back, production has been halted for shows and movies, and tens of thousands of Disney workers have been furloughed. Disney is a huge employer and it’s clear the company is doing what it can to take care of its workers and keep the magic alive during this time.
Related: Could Disney Really Open by June? J.P. Morgan Analyst Says Yes!
Stay Informed
Inside the Magic will continue to bring you news about The Walt Disney Company as it is released. We encourage our readers to stay informed by subscribing to our newsletter and checking our website for more Disney news.
Even though this is an unprecedented time for The Walt Disney Company and although many Disney fans and employees are saddened by the current events, we at Inside the Magic are trying our best to keep the magic alive for everyone. We encourage all of our readers to stay safe and healthy during this time and do what you need to do to bring a little bit of pixie dust to your everyday life.