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.
Due to the size and short term nature of the credit line, it’s apparent that the credit agreement is to offset COVID-19’s impact on company-wide operations. The 2021 maturity date also confirms that both parties believe the company will be back on its feet within a year or so, aligning with what other analysts have inferred regarding park attendance levels and revenue.
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.