Walt Disney Company Enters $5 Billion Credit Agreement With Citibank
With its parks shuttered, cruises docked and movie production suspended, Disney is looking to financial institutions to help stay afloat. As a result, they’ve just entered into a 365-day credit with Citibank for up to $5 billion. This is according to reports from Variety base on a filing from the Securities and Exchange Commission.
The credit can be used for ‘general corporate purposes.’ This is in addition to the $3 billion credit agreements Disney entered into back in March. The new Citibank agreement will mature on April 9, 2021.
As we mentioned yesterday Bob Iger would appear to be back at the helm of the Walt Disney Company. Credit is being raised to support the company while Disney’s revenue is being massively impacted by the shutdown. As Variety tells us parks and consumer products brought in more revenue than any other segment- a mighty $26.23 billion last year. As of going to print, all Disney parks worldwide are closed.
Due to the length of the closure, the Walt Disney Company will furlough all non-essential employees starting on April 19th. In the lead-in to the closure Disney has spent a lot of time around the negotiating table with unions on both coasts to reach an agreement for workers impacted by the closure allowing them to maintain their health insurance for up to a year.
The furloughs have also hit other divisions of Disney including Marvel and Lucasfilm as movie theaters around the world remain closed.
Readers are encouraged to keep following along with MickeyBlog for the latest update on this and other Disney-related news stories.
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