The Walt Disney Company Enters $5 Billion Credit Agreement with Citibank as COVID-19 Costs Mount
With the Coronavirus (COVID-19) pandemic not going away any time soon and The Walt Disney Company still facing an uncertain financial future, the company has secured a new credit line of up to $5 billion, according to Seeking Alpha.
Disney revealed in a new SEC filing on Monday that it entered into a 364-day credit agreement with Citibank for up to $5B just last Friday, with the option to extend the maturity beyond April 9, 2021 if lenders consent.
The Walt Disney Company also recently announced a $6 billion U.S. debt offering as well as a $1.3 billion Canadian debt offering in March. At the end of the previous fiscal year, Disney had long-term debt worth over $38 billion. Disney is far from the only media company seeking to raise money, with Comcast, owner of Disney’s chief theme park rival, Universal Parks & Resorts, also raising money to offset COVID-19’s impact on their operations.
Keep reading WDWNT for continuous updates on this ongoing story.