The Walt Disney Company is adding a significant amount of credit amid the COVID-19 pandemic. On Monday, Disney has signed a new 364-day revolving credit agreement with Citibank that would provide access to as much as $5 billion. The agreement, which matures on April 9, 2021, can be extended for an additional year with the lenders’ consent.
Along with the new agreement, Disney last month entered into a separate 364-day, $5.25 billion credit agreement, and a $3 billion, five-year credit agreement, giving the company access to more than $13 billion in fresh credit, should it be needed. It also has a $4 billion credit facility which matures in 2023.
Like most large companies, the pandemic led Disney to increase its access to cash so that it can have the ability to reopen quickly once the threat recedes. Along with the newly attained credit, Disney raised $6 billion in a debt offering last month, as well as an additional $1.3 billion in a Canadian debt offering.
