The Walt Disney Co. Lends $1.7 Billion to Euro Disney
Euro Disney S.C.A., operator of Disneyland Paris, has been bailed out of their debt by a loan of $1.7 billion from The Walt Disney Co., as well as two other French subsidiaries.
Euro Disney S.A.S. Chief Executive Philippe Gas said:
This refinancing will enable us to reduce our financing costs and give us greater investment and operational flexibility. This is a key step in the development of our resort that we pursue for the benefit for all of our stakeholders. I strongly believe this will be highly beneficial to the company, its cast members and shareholders.
Additionally, a gradual repayment schedule and an extension on the maturity of the debt until 2030 will allow Euro Disney to invest more in long-term growth, putting them in a better position than they would be otherwise. The loan on behalf of The Walt Disney Co. will not affect any of the royalties paid to them under the companies’ license agreement.