Disney enters $5 billion credit agreement

(Reuters) – Walt Disney Co said on Monday it has entered an unsecured credit agreement for $5 billion, at a time when companies across industries are scrambling to bolster their liquidity to weather the fallout from the coronavirus crisis.

Disney’s theme parks business has taken a particularly severe hit as lockdowns have restricted people’s movement and gatherings in order to curb the spread of COVID-19.

The company said in a filing https://www.sec.gov/ix?doc=/Archives/edgar/data/1744489/000119312520105345/d916954d8k.htm the credit agreement, which has terms similar to another one it entered on March 6, will mature on April 9, 2021, adding that the fund could be used for day to day operations.

The agreement can be extended for another year at the time of maturity if the lenders agree, it said.

Citibank N.A. served as the designated agent for the agreement, Walt Disney said.

(Reporting by Shariq Khan in Bengaluru)