The Walt Disney Company Raises $1.3 Billion in Canadian Debt Offering as Revenue Diminishes
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 acquired more cash, this time in a $1.3 billion debt offering in Canada, according to The Hollywood Reporter.
Disney revealed in a SEC filing on Thursday that it raised through a Canadian private placement “around $1.3 billion in 3.057 percent senior notes,” which would be due in 2027. Disney plans to use the new debt financing “for general corporate purposes, including the repayment of indebtedness (including commercial paper).”
On Friday, Disney disclosed in a different SEC filing that it recently raised $6 billion in debt, also to pay down “other debt obligations.” According to the Reporter, the American debt offering consisted of “five different notes, set to mature between 2025 and 2050,” with a valuation of between $500 million and $1.75 billion, and interest rates set between 3.35 percent and 4.7 percent.
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 through debt, with Comcast, owner of Disney’s chief theme park rival, Universal Parks & Resorts, also raising debt to offset COVID-19’s impact on their operations.
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