Amid the continued coronavirus pandemic, the Walt Disney Co. has entered into a brand new 364-day credit score settlement with Citibank for as much as $5 billion, in line with a filing with the Securities and Exchange Commission on Monday.
The proceeds could also be used for “common company functions,” mentioned the corporate within the submitting. It follows — and is structured equally to — the $5.25 billion and $three billion credit score agreements Disney entered into on March 6, which help its business paper borrowings and can be obtainable for common functions. The latest settlement is scheduled to mature on April 9, 2021; the previous two will expire on March 5, 2021.
These credit score agreements come as Disney’s theme parks and resorts the world over are at present shut down in an effort to forestall the additional unfold of COVID-19. Its parks and client merchandise division introduced in additional income than some other section — $26.23 billion — in fiscal 2019, over 37% of Disney’s $69.57 billion in income final yr. By working revenue, parks and client merchandise represented over 45% of Disney’s $14.87 billion in 2019 working revenue.
For now, Disneyland and Walt Disney World are indefinitely closed, and over the weekend, Disney furloughed 43,000 Walt Disney World employees.