DISNEY in Trouble? Media Giant Seeks $6 Billion With New Debt Offering

The Walt Disney Co. is looking to raise as much as $6 billion through a debt offering, according to a company filing with the Securities and Exchange Commission on Friday.

Disney is offering six different notes, which will mature between 2025 and 2050, and have interest rates as low as 3.35% and as high as 4.7%. The debt notes range in value from $500 million and $1.75 billion.

The company didn’t specify what the funds would be used for, but did say: “We intend to use the net proceeds from the sale of the notes for general corporate purposes, including the repayment of indebtedness,” or paying down debt the company currently has.

Disney also filed with the SEC on Thursday, letting shareholders know that it expects the novel coronavirus to have a significant impact on its business in a number of ways.

The company has already closed its theme parks around the world, suspended cruises, and delayed theatrical distribution worldwide as theaters have been ordered to close and people to stay in their homes. Some analysts estimate Disney could lose $500 million just from closing its parks through the end of March, and hundreds of millions more depending on how long the spread of the coronavirus persists.

www.thewrap.com/disney-looks-to-raise-6-billion-with-new-debt-offering/