Disney has raised $11 billion dollars in new debt, according to a Tuesday filing with the Securities and Exchange Commission (SEC).
“The company intends to use the net proceeds from the sale of the notes for general corporate purposes,” the filing read, which include “the repayment of commercial paper” and “the repayment at maturity of the guarantor’s 1.800% notes due June 2020 and the guarantor’s floating rate notes due June 2020.”
Here is how the $11 billion breaks down in terms of each note’s maturity date, interest rate, and their respective dollar amounts:
Jan. 13, 2026 at 1.750%: $1.5 billion
Jan. 13, 2028 at 2.200%: $1 billion
Jan. 13, 2031 at 2.650%: $2.5 billion
May 13, 2040 at 3.500%: $1.75 billion
Jan. 13, 2051 at 3.600%: $2.75 billion
May 13, 2060 at 3.800%: $1.5 billion
After backing out some offering expenses, Disney will receive “approximately $10,918,030,000,” the company said.
Disney has been disproportionally roughed up by shutdowns due to the ongoing coronavirus pandemic. Its parks, cruise line and touring shows have been unable to operate, and movie theater closures have also crushed the company’s revenue, resulting in furloughs at the company.
While Disney+ has been a bright spot, it would take an incredible number of (paid) subscriptions to offset the losses elsewhere.
DIS stock is down more than $30 per share since mid-February — or about one-quarter of its value. Since then, a slew of media analysts have downgraded their ratings of the stock.
Read all about Disney’s fiscal second-quarter 2020 earnings here — it was not a pretty picture.