The Walt Disney Company Raises $6 Billion In Debt Offering

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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).”

walt disney company debt offering coronavirus

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.

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