Disney closes $6 billion 364-day, $4 billion five-year facilities

By Wendy Van Sickle

Columbus, Ohio, March 9 – Walt Disney Co. entered into a new $6 billion 364-day facility and a new $4 billion five-year facility to replace its existing $2.5 billion 364-day credit agreement and $2.25 billion five-year credit agreement, according to two filings with the Securities and Exchange Commission.

The 364-day facility matures on March 8, 2019 and may be extended by one year.

The five-year facility matures on March 9, 2023.

Interest under both facilities is equal to Libor plus a margin equal to the credit default swap spread applicable to the company’s long-term senior debt, subject to a minimum margin that ranges from 15 basis points to 50 bps and a maximum margin that ranges from 75 bps to 150 bps. The floor and the cap depend on the company’s debt rating.

The commitment fee ranges from 3 bps to 6 bps for the 364-day agreement and 5 bps to 12.5 bps for the five-year agreement, depending on the company’s ratings.

Citibank, NA and JPMorgan Chase Bank, NA are the administrative agents. Citibank is the designated agent for the 364-day facility, and JPMorgan is the designated agent for the five-year facility. Citigroup Global Markets Inc., JPMorgan, BNP Paribas Securities Corp. and Deutsche Bank Securities Inc. are the joint lead arrangers and bookrunners. BNP Paribas and Deutsche Bank Securities Inc. are the syndication agents.

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

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