Disney Signs $5 Billion Credit Agreement

As the global coronavirus pandemic continues on, Disney has entered another credit agreement. The agreement with Citibank is for 364-day revolving credit for as much as $5 billion. The agreement, which matures on April 9, 2021, may be extended with the lender’s consent. This comes after other recent credit deals by Disney as it weathers the stormy economic climate caused by the pandemic. In all, Disney now has access to $13 billion in credit.

Moodys senior VP Neil Begley wrote in a report last month that “Disney has significant liquidity to help carry it through this ‘black swan’ crisis.”

This new credit line comes after last month Disney entered into a separate 364-day, $5.25 billion credit agreement, along with a $3 billion, five-year credit agreement. In all, Disney now has access to $13 billion in new credit. It also has a $4 billion credit facility that will be maturing in 2023. Disney also raised $6 billion in a debt offering last night along with a $1.3 billion debt offering in Canad.

All of this comes as much of Disney continues to remain closed. All of its parks globally continue to remain shuttered. The Disney Cruise Lines continue to be unable to take on guests. Movie and television production are essentially shut down as people continue to shelter in place to avoid spreading the coronavirus. On April 19th, Disney will be furloughing all non-necessary employees. Some estimates have Disney losing as much as $30 million a day.

Disney will need the cash that has been raised to not only weather this economic storm but also as capital for reopening once the storm subsides. DAPS MAGIC will continue to follow all of these stories.

 

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Mr. DAPs

Mr. DAPs

Hi, I'm Mr. DAPs, the Founder, and Editor in Chief of DAPS MAGIC! I can be regularly found at Disneyland with my hat and bow tie taking pictures and simply enjoying the Happiest Place on Earth. I'm also the weekly host of GEEKS CORNER and your Disney reporter for DISNEY REPORTER on DAPS MAGIC's YouTube channel. I am also now honored to announced that I'm a Brand Ambassador with Her Universe! Find me on Twitter and Instagram. as I'd love to connect with you. Make sure and say hi!

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