As The Walt Disney Company and millions around the world attempt to figure out how to handle the coronavirus/CODIV-19 outbreak, back-up plans are being put in place. Disney has filed to raise $6 billion in new debt offering which will be “to use the net proceeds from the sale of the notes for general corporate purposes, including the repayment of indebtedness (including commercial paper).”
Five different notes were filed with the Securities and Exchange Commission on Friday, March 20, 2020. Those notes are as follows:
- $1.75B in 3.35% notes due 2025
- $500M in 3.7% notes due 2027
- $1.25B in 3.8% notes due 2030
- $750M in 4.625% notes due 2040
- $1.75B in 4.7% notes due 2050
For those who may not fully understand this process, this debt offering filed by The Walt Disney Company will be used to pay off other debt that will hit maturity level soon. Per The Hollywood Reporter, Disney is going to use the money to help pay down other debt obligations which had amounted to more than $38 billion by the end of the last fiscal year.
“We have closed our theme parks; suspended our cruises and theatrical shows; delayed theatrical distribution of films both domestically and internationally; and experienced supply chain disruption and ad sales impacts,” the company wrote in the filing note. “In addition there has been a disruption in creation and availability of content we rely on for our various distribution paths, including most significantly the cancellation of certain sports events and the shutting down of production of most film and television content.”
Disney is far from the only company that has done this kind of move in recent weeks due to losses brought about because of CODIV-19. Pepsi, Verizon, Coca-Cola, and Exxon have all sold off debt offerings to help combat payments that need to be made now.
See Also:
- Walt Disney World Resort Closing On Sunday Through The End Of March Due To Coronavirus Concerns
- Disneyland Parks Closing On Saturday Through The End Of March Due To Coronavirus Concerns
- Disney Cruise Line Suspending All New Departures Starting March 14 Through End Of The Month
- Universal Orlando Resort And Universal Studios Hollywood Closing Amid Threat Of Coronavirus
- Walt Disney World Releases Additional Details Regarding Closure – Annual Passes, Refund Policies, More
- Walt Disney World College Programs Ending Early Due To Coronavirus Closures
- Disney Cruise Line Sailings Through April 12, 2020, Removed Due To Coronavirus Threat
- Walt Disney World Resort Hotels, Disney Springs, Downtown Disney, And Disney Stores All Closing This Week Due To Coronavirus Threat
- All Walt Disney World Transportation To Be Temporarily Suspended Due To COVID-19 Threat And Closures
- Photos Of Empty Florida Theme Parks On First Day Of Temporary Closures – Epcot, Hollywood Studios, Universal Studios, More
- Universal Orlando Closing Resort Hotels And CityWalk This Week Due To Coronavirus Threat
- All Construction Work At Walt Disney World Ceases Operation During Temporary Closure
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runDisney Cancels Star Wars Rival Run Weekend Due To Threat Of Coronavirus
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