Walt Disney Company Announces $6 Billion Debt Offering as Revenue Diminishes

Today, The Walt Disney Company announced a $6 billion debt offering. Five different notes were part of the offering, with maturity dates ranging from 2025 to 2050.

In the filing with the Securities and Exchange Commission, Disney stated the purpose of the offering is “to use the net proceeds from the sale of the notes for general corporate purposes, including the repayment of indebtedness”. Simply put, the debt offering will be used to pay off other debt that is soon coming to maturity, of which Disney has roughly $38 billion in long-term debt. 

The Walt Disney Company is not the only large corporation that has resorted to issuing new debt to fulfill its obligations, as in recent weeks companies like Verizon and Coca-Cola also had debt offerings.

A debt offering like this will likely not raise Disney’s long-term debt balance significantly, but it does underscore the fact that cash flow for the company is tight in the time of the COVID-19 pandemic.

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