Walt Disney Friday said it plans to raise $6 billion from the sale of debt securities.
In a filing with the SEC Friday it fleshed out a prospectus from the day before where it had signaled its intention to sell notes. Companies are taking advantage of low interest rates to raise fresh cash in the midst of an escalating economic crisis. Disney’s parks have been closed, movie releases shifted and TV production shut down. It’s on CreditWatch at ratings agencies but is seen as having enough cash and borrowing facilities to weather the storm.
It’s planning to selling five tranches of notes with various maturities from 2025 to 2050 worth between $500 million and $1.75 billion, and with interest rates from 3.35% to 4.7%.
When the company noted Thursday its intent to sell notes, it also filed a separate SEC document outlining business risks due to the coronavirus.