Walt Disney Co 8-K

What Happened The Walt Disney Company (DIS) announced on Feb 27, 2026 (filed on Form 8-K Mar 3, 2026) that it entered into two new unsecured credit agreements: a $5.25 billion 364‑day facility and a $4.00 billion five‑year facility, replacing prior like-sized facilities. Both facilities are guaranteed by TWDC Enterprises 18 Corp. (subject to customary release conditions) and are available to support the company’s commercial paper program and for general corporate purposes.

Key Details

• Total capacity: $5.25 billion (364‑day Credit Agreement) + $4.00 billion (Five‑Year Credit Agreement) = $9.25 billion.
• Maturities: 364‑day facility expires Feb 26, 2027 (option to extend certain advances to Feb 26, 2028); five‑year facility expires Feb 27, 2031.
• Interest: options include Term SOFR (USD), EURIBOR (EUR), TIBOR (JPY), Daily Simple SONIA (GBP) plus a spread tied to Disney’s public debt rating (0.625%–1.000%); Base Rate USD advances carry Base Rate + 0.00% spread.
• Covenants & defaults: customary affirmative/negative covenants; a financial covenant requires Consolidated EBITDA to Consolidated Interest Expense ≥ 3.00 to 1.00 (measured on trailing four quarters). Certain entities (e.g., related to Hong Kong Disneyland, Shanghai Disney Resort, and FuboTV) are excluded from some representations/covenants; Disney also amended a 2024 facility to add Fubo as an excluded entity.

Why It Matters These facilities preserve Disney’s liquidity and back its commercial paper program, giving the company flexibility to fund operations and near‑term needs. The five‑year facility provides multi‑year committed availability, while the 364‑day facility offers short‑term backstop with an option to extend. Investors should note the 3.00x EBITDA-to-interest coverage covenant and the unsecured nature of the facilities; breaches could lead to acceleration under usual default provisions.