Disney Raises $1.3 Billion in New Debt in Canada

Bob Chapek, chairman of Walt Disney Parks -March 25, 2017 - Getty-H 2020
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The move follows the conglomerate raising $6 billion in fresh cash in the U.S. market.

The Walt Disney Company has returned to the debt market for fresh cash, this time in Canada.

The studio in an SEC filing on Thursday said it has raised via a Canadian private placement around $1.3 billion in 3.057 percent senior notes, due 2027. Disney said it intended to use the new Canadian debt financing "for general corporate purposes, including the repayment of indebtedness (including commercial paper)."

Disney on Friday in a separate SEC filing disclosed it had raised $6 billion, again to pay down other debt obligations. The U.S. debt offering comprised five different notes, set to mature between 2025 and 2050, and with values of between $500 million and $1.75 billion, and interest rates between 3.35 percent and 4.7 percent.

Disney had long-term debt totaling more than $38 billion at the end of its last fiscal year. The studio is among other large media players, including Comcast, turning to the debt market to offset the impact of the coronavirus outbreak on their businesses.

And Discovery in its own SEC filing revealed it drew down $500 million on March 12 from a revolving credit facility to shore up its balance sheet amid the pandemic.