Disney Returns to Debt Market For $1.3 Billion In New Cash From Canada
The Walt Disney Company, has returned to the debt market for additional cash. This time they are borrowing in Canada.
The studio in an SEC filing yesterday (March 26th) said it raised an addition $1.3 billion in 3.057% senior notes from a Canadian private placement due in 2027.
The Walt Disney Company said that it intends to use the new financing for “general coroporate purposes” according to a recent piece in The Hollywood Reporter.
Last Friday in a separate filing, Disney disclosed that it raised nearly $6 billion dollars which it would put toward other debt obligations. This offering from the U.S. was comprised of five different notes which will mature as early as 2025 but will run through 2050. The individual values were between $500 million and $1.75 billion with interest rates between 3.35% – 4.7%.
As The Hollywood Reporter points out, Disney had long-term debt totalling more than $38 billion at the end of the last fiscal year. The studio and other media giants are turning to the debt market to offset the impact that the COVID-19 virus is having on their businesses.
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Source: The Hollywood Reporter