Euro Disney receives loan from The Walt Disney Co.
Sep 24, 2012
Euro Disney S.C.A. has recently refinanced their debt with the help of a $1.7 billion loan from the Walt Disney Co. and two other French subsidiaries. Euro Disney is a publicly traded company that manages Disneyland Paris, which has long faced debt problems. Disney currently owns 40% of the stock in Euro Disney, but interestingly, there have been rumors that Disney may be considering buying out the rest of the remaining stock, which is held by individual investors.
Philippe Gas, Chief Executive for the company, 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."
This loan is now good through 2030, so the hope is that Euro Disney will be able to invest in long-term growth, due to the debt repayment schedule being extended and payment size reduced.
Gas continued, "The Walt Disney Co., with this transaction, reaffirms its continued confidence in Disneyland Paris which has successfully become, over the past 20 years, the number one tourist destination in Europe, a growth driver of French tourism and an important ambassador of the Disney brand across Europe."
The Walt Disney Co. will see no change to any royalties they are currently being paid.