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Walt Disney Company Takes On $5 Billion Line of Credit

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According to SEC filings, The Walt Disney Company has taken a $5 billion line of credit, with Citibank listed as the “designated agent.”

This line of credit is one of three debt offerings assumed by Disney since late March, all of which total over $12 billion. However, this recent line differs from the others in that it is just a year in length, with the option of extending for another year pending lender approval. The previous debts obtained by Disney over the last weeks have longer maturity periods that are decades in length.

BlogMickey.com speculates that because it is short term in length, Disney has taken the $5 billion line of credit to offset park and resort closures due to the Coronavirus pandemic. The longer term debt is most likely an effort to restructure some of the Company’s $38 billion of debt from previous years.

All Disney theme parks remain closed indefinitely, with possible reopening dates uncertain at this time.

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