The Walt Disney Company 8-K

Summary

New credit agreements renew Disney’s revolving credit facilities, preserving liquidity support for commercial paper borrowings and other general corporate purposes. Disney also amended its 2024 credit agreement to add Fubo as an excluded entity.

Key Figures

• Facility capacity: up to $5.25B under the 364-day agreement and up to $4B under the five-year agreement, replacing facilities of the same amounts; both are unsecured and guaranteed by TWDC Enterprises.
• Maturities: 364-day facility expires 2/26/2027, with an option to extend all or part of outstanding advances to 2/26/2028; five-year facility expires 2/27/2031.
• Interest: at Disney’s election, benchmark-rate advances bear the applicable currency benchmark plus a spread of 0.625%–1.000%, based on its public debt rating; U.S. dollar base-rate advances bear the base rate plus 0.000%.
• Covenant: minimum Consolidated EBITDA to Consolidated Interest Expense ratio of 3.00:1.00, measured at the end of each four-consecutive-fiscal-quarter period.
• Fubo is excluded from specified representations, covenants and events of default under the new facilities; the 2024 credit agreement amendment also adds Fubo as an excluded entity.