Given that the coronavirus pandemic (COVID-19) has not disappeared for the foreseeable future and that the Walt Disney Company is on the verge of an uncertain financial future, the company has secured a new line of credit of up to $5 billion, according to Seeking Alpha. The product can be used for “general corporate” purposes, the company says in the notification. It follows – and is similarly structured – the $5.25 billion and $3 billion credit contracts that Disney entered into on March 6 that support its business paper credits and are also available for general purposes. The final agreement is due on 9 April 2021; the first two expire on March 5, 2021. Walt Disney said Monday that it has entered into a new $5 billion loan agreement. This follows $6 billion the company raised last month by selling debt. These credit contracts are due to the fact that Disney theme parks and resorts around the world are being closed to prevent the spread of COVID-19. In fiscal 2019, the Parks and Consumer Goods division generated more revenue than any other segment – $26.23 billion – or more than 37 percent of Disney`s revenue last year of $69.57 billion. Thanks to managers, parks and consumer goods, more than 45% of Disney`s $14.87 billion achieved operating results in 2019. The agreement could be extended for an additional year at maturity if lenders agreed, he said. Disney – and other companies – have amassed a war box to see it through the coronavirus pandemic that has hit their divisions hard, from theme parks to production, live sports and advertising. The agreements give it $11 billion in fresh money.

It raises so much money because it is particularly exposed to the carnage of COVID-19 and because it can be considered one of the largest and most creditworthy companies in the entertainment industry. In a statement filed Monday with the SEC, Disney said it had signed a new 364-day revolving credit agreement with Citibank, which would allow access to up to US$5 billion. The agreement, which is pending on April 9, 2021, may be extended for an additional year with the agreement of the lenders. Last month, Disney entered into a separate 364-day credit contract worth $US5.25 billion and a five-year, $3 billion credit contract that gives it access to more than $13 billion in fresh credit if necessary. In addition, the company has a $4 billion credit facility, which matures in 2023. Given the size and short-term nature of the line of credit, it is clear that the credit contract is intended to offset the effects of COVID-19 on the entire business. The 2021 due date also confirms that both parties expect the company to get back on its feet within a year and are in line with what other analysts have deduced in terms of Parks` attendance and revenue. Others also took into account the debt market or revolving credit facilities as a nestei against the serious economic effects and unknown duration of coronvirus, and acknowledged in the SEC submissions that the spread of the virus has a significant negative impact on their activities and that the magnitude and duration of the result are still not foreseeable. As a result of these conflicting trends, Disney still has much to fear as long as the virus harms the entertainment industry. At the same time, Disney`s access to large loans, the enduring value of its real estate and its growing streaming successes are promising signs of its ability to weather the economic storm. What the “House of the Mouse” needs to do in the meantime is find ways to stay afloat, which are independent of the crisis, and Disney investors hope its newly discovered credit availability will do so. (Reuters) – Walt Disney Co said on Monday it had entered into a $5 billion unsecured credit contract at a time when companies in all sectors are trying to boost their liquidity to overcome