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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Pierce
Pierce
8 months ago

Nothing unusual about this. Normal practice for public companies, especially when interest rates are so low.

Oh Boy!
Oh Boy!
8 months ago

Bob Iger’s legacy will be leaving the company with a 38 billion dollar debt, not one new park, Epcot destroyed, broken down old rides, ownership of old movies nobody cares about and leaving us with Bob Chapek who needs to “ketch-up” to Universal, who is building Epic Universe as we speak.

Aaron
Aaron
7 months ago
Reply to  Oh Boy!

Although Universal is doing great, they’re not anywhere near a threat to Disney at this point. Yes, they have debt. But most companies do. I like the direction of EPCOT and making it more vibrant and cohesive. Disney does maintenance and upgrading on most rides on a near annual basis.

Aaron
Aaron
7 months ago
Reply to  Oh Boy!

And a collection of old movies? What? I don’t even know what you’re talking about, but NO company has a content collection anywhere near as good as Disney’s.

Aaron
Aaron
7 months ago
Reply to  Oh Boy!

And if you look at his legacy, it’s strong. He was consistently regarded as one of the best CEOs in the world and it showed. He grew every facet of the company and made very major strategic decisions. Chapek will use his experience with the company to continue implementing those strategies.

Aaron
Aaron
7 months ago
Reply to  Oh Boy!

“Not one new park.” Are you kidding me? Shanghai Disney Resort is a real park that opened in 2016, maybe you should take a look into that

Tom Corless
Admin
7 months ago
Reply to  Aaron

It’s pretty junky lol

Aaron
Aaron
7 months ago
Reply to  Oh Boy!

You do know Chapek has worked for Disney for 25+ years, right?