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Disney Plans Another Bonds Offering With A Six-Part Deal

The Walt Disney Company (NYSE: DIS) is planning a second debt offering this year, according to its filing with the Securities and Exchange Commission.

Benzinga · 05/12/2020 08:57

The Walt Disney Company (NYSE: DIS) is planning a second debt offering this year, according to its filing with the Securities and Exchange Commission.

What Happened

Disney didn't disclose the amount it intends to raise as part of the six-part deal bonds sale, or the size of the trances or yields, as earlier reported by MarketWatch.

It said that the money raised as part of the offering will be used for general corporate purposes, including the repayment of commercial paper and clearing other loans.

Morgan Stanley (NYSE: MS), Goldman Sachs Group Inc. (NYSE: GS), Credit Suisse (NYSE: CS), and BNP Paribas SA (OTC: BNPQY) will serve as the underwriters for the entertainment company's offering, according to the filing.

Disney previously raised $6 billion in a debt offering in March. A host of companies are looking to increase their liquidity with bond sales during the novel coronavirus (COVID-19) pandemic, as the global economy is battered.

The Boeing Company (NYSE: BA) and Apple Inc. (NASDAQ: AAPL) earlier this month announced that they had raised $25 billion and $8 billion each in debt offerings.

PayPal Holdings Inc. (NASDAQ: PYPL) on Monday also announced a $4 billion bonds sale.

Disney Parks, Experiences and Products subsidiary is particularly impacted by the pandemic. The company on Monday reopened its Shanghai theme park in China, but others, including those in the United States and Europe, remain shut.

Disney Price Action

Disney shares closed 1.27% lower at $107.77 on Monday. The shares traded slightly lower in the after-hours at $107.56.