Disney enters $5.25 billion replacement 364-day credit agreement

By Marisa Wong

Los Angeles, March 7 – Walt Disney Co. entered into a 364-day credit agreement on March 3 with TWDC Enterprises 18 Corp. as guarantor and Citibank, NA as agent, which provides for advances in an aggregate principal amount of up to $5.25 billion, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The credit agreement replaces the company’s $5.25 billion 364-day credit agreement dated March 4, 2022.

The new credit agreement will expire on March 1, 2024. The company has the option to extend the maturity date of all or a portion of advances outstanding at the time of maturity to Feb. 28, 2025.

Borrowings bear interest at adjusted term SOFR, Euribor, Tibor or Sonia plus an interest rate spread based on the company’s public debt rating. The spread ranges from 62.5 basis points to 100 bps.

The credit agreement requires the company to maintain a minimum ratio of consolidated EBITDA to consolidated interest expense of 3.00 to 1.00 as of the last day of each period of four consecutive fiscal quarters.

Citibank and JPMorgan Chase Bank, NA are co-administrative agents.

Citibank, JPMorgan, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. are joint lead arrangers and joint bookrunners.

BNP Paribas and Deutsche Bank are co-syndication agents.

Co-documentation agents are Bank of America, NA, Credit Suisse AG, New York Branch, Goldman Sachs Bank USA, HSBC Bank USA, NA, Mizuho Bank, Ltd., Morgan Stanley MUFG Loan Partners, LLC, Royal Bank of Canada, Societe Generale, Sumitomo Mitsui Banking Corp., TD Securities (USA) LLC, Truist Bank, U.S. Bank NA and Wells Fargo Bank, NA.

Agricultural Bank of China Ltd., New York Branch, Banco Santander, SA, New York Branch, Bank of China, Los Angeles Branch, ING Bank NV, Dublin Branch and Standard Chartered Bank are managing agents.

The credit agreement supports the company’s commercial paper borrowings and is available for other general corporate purposes.

Walt Disney is a Burbank, Calif.-based entertainment and media company.

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