Summary
The Walt Disney Company (DIS) announced on March 3, 2026, through an 8-K filing, the establishment of new credit facilities. The company entered into a $5.25 billion 364-Day Credit Agreement and a $4 billion Five-Year Credit Agreement, replacing previous facilities of similar amounts. These new agreements are unsecured and guaranteed by TWDC Enterprises 18 Corp., providing essential liquidity for commercial paper borrowings and general corporate purposes. The new facilities offer flexibility in borrowing terms, including options for various interest rate benchmarks (SOFR, EURIBOR, TIBO, SONIA, or Base Rate) plus a spread based on DIS's public debt rating. Both agreements include customary covenants, such as financial reporting and limitations on mergers, and require a minimum Consolidated EBITDA to Consolidated Interest Expense ratio of 3.00:1.00. The 364-day facility can be extended by a year, while the five-year facility matures in 2031, providing significant financial flexibility.
Key Highlights
- 1New $5.25 billion 364-day credit facility and a $4 billion five-year credit facility established, replacing prior agreements.
- 2Total committed credit capacity of $9.25 billion available for commercial paper borrowings and general corporate purposes.
- 3Both new credit agreements are unsecured and benefit from a guarantee by TWDC Enterprises 18 Corp.
- 4Flexible interest rate options including various benchmark rates plus a spread tied to Disney's public debt rating.
- 5The 364-day credit agreement has an option for a one-year extension, providing potential for extended liquidity.
- 6The five-year credit agreement extends the maturity date to February 27, 2031.
- 7Customary covenants and a financial maintenance covenant requiring a minimum Consolidated EBITDA to Consolidated Interest Expense ratio of 3.00:1.00 are included.