Disney refinances loan with $2.25 billion five-year credit agreement

By Susanna Moon

Chicago, June 11 - Walt Disney Co. refinanced a loan with a $2.25 billion five-year credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus a margin equal to the credit default swap spread applicable to the company's senior non-credit enhanced long-term debt, subject to a minimum margin of 20 basis points to 50 bps and a maximum margin of 87.5 bps to 150 bps. The exact minimum and maximum margins are based on the company's ratings.

The commitment fee is 6 bps to 12.5 bps.

Disney closed the credit agreement on Friday with J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. as the lead arrangers and book managers.

Proceeds will be used for commercial paper borrowings and for other general corporate purposes.

The facility will expire in June 2017 and replaces the company's $2.25 billion three-year credit agreement set to expire on Feb. 22, 2013.

The provisions of the new facility are substantially similar to those of the previous agreement. The new facility contains only one financial covenant, relating to interest coverage, and specifically excludes certain entities, including Euro Disney, Hong Kong Disneyland and Shanghai Disney Resort, from any representations, covenants or events of default, the filing noted.

JPMorgan Chase Bank, NA and Citibank, NA are the co-administration agents. JPMorgan Chase Bank is the designated agent.

BNP Paribas and Deutsche Bank Securities Inc. are the co-syndication agents. Bank of America, NA; Bank of China, Los Angeles Branch; Credit Suisse AG, Cayman Islands Branch; Goldman Sachs Lending Partners LLC; HSBC Bank USA, NA; Mizuho Corporate Bank, Ltd.; Morgan Stanley MUFG Loan Partners, LLC; Royal Bank of Canada; Royal Bank of Scotland plc and Wells Fargo Bank, NA are the co-documentation agents.

The entertainment and media company is based in Burbank, Calif.

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