This is from CBS Marketwatch yesterday (that's why it says DIS shares are flat...they were actually up a bit today). As I understand it, in a nutshell, Disney is issuing these bonds in an attempt to retire other debt that currently carries higher rates.
I guess the good news is that Disney can now longer go out and criminally overspend to buy things like failed cable networks. But of course it probably would have been easier had the board just brought in good management and not drive Disney's credit rating to WorldCom levels. Natuarally the bad thing is Disney can't afford to buy things like new rides.
Disney announces $1B offering The Walt Disney Co. (NYSE: DIS) is making a public offering of $1 billion of senior convertible notes due in 2023. The offering could be valued at $1.15 billion if an additional $150 million in notes is exercised. The company intends to use the proceeds of the offering for general corporate purposes. Burbank-based media giant Walt Disney Co. operates Walt Disney Parks & Resorts; owns the ABC television network, 10 broadcast stations and more than 60 radio stations; and produces films through Walt Disney Studios. © 2003 American City Business Journals Inc.
