Mickey seems to be maxing out his credit cards these days.
The Walt Disney Company, which has been taking financial a beating due to the coronavirus shutdown, is now taking out even more debt in an attempt to weather the storm.
Nearly $11 billion. ELEVEN BILLION.
Last year yes, Disney was praised for raking in $11 billion at the box office. Now they’re wiping those gains out just to keep the lights on.
On the same day that Shanghai Disneyland reopened at a fraction of its typical capacity after a nearly four-month closure, Disney tapped the debt markets for a series of notes that come due between 2026 and 2060.
The debt raise spurred a new round of ratings commentary on Disney from the major credit arbiters. Fitch Ratings gave the debt issue a grade of A minus with a negative outlook given the short-term headwinds facing the company.
While many analysts feel that the company will rebound in the long-term, the near-term is looking pretty grim with U.S. Disney Parks still closed, 100,000 employees furloughed without pay, and Hollywood production and movie distribution mostly ground to a halt.
Shanghai Disneyland has reopened to limited crowds, and is a bit of a bright spot in an otherwise dismal year for the Mouse House. And Disney Springs begins phased reopening on May 20. However, there’s still no official word as to when Disney will open Walt Disney World or Disneyland.