Filing Overview
Company: The Walt Disney Company (NYSE: DIS). Form 8-K date: June 12, 2023. The filing reports planned redemptions of debt securities and does not cover a fiscal reporting period or provide operating results.
Debt and Liquidity-Related Developments
- Disney Enterprises, Inc., a subsidiary, intends to redeem all outstanding 7.55% Senior Debentures due July 15, 2093, with total principal of $201.169 million.
- The debentures are scheduled for redemption on July 15, 2023, with payment on July 17, 2023. The redemption price will be calculated under the applicable indenture, plus accrued interest through, but excluding, the redemption date.
- TWDC Enterprises 18 Corp., a subsidiary, intends to redeem all outstanding floating-rate notes due August 15, 2057, with total principal of $6.425 million.
- The floating-rate notes are expected to be redeemed on or about August 15, 2023, at the price calculated under the applicable indenture, plus accrued interest through, but excluding, the redemption date.
Material Changes and Unusual Items
The filing announces planned retirement of approximately $207.594 million in aggregate principal amount of long-dated debt. The filing does not state the redemption premiums, the source of funds, any gain or loss on redemption, or the expected effect on interest expense, cash flow, or liquidity.
Guidance, Risks, and Contingencies
The filing does not provide financial guidance, management commentary, operating outlook, or new business risks. Disney states that the Form 8-K itself does not constitute a formal notice of redemption for either security; the redemption notices are expected to be delivered under the applicable indentures.
Key Investor Verification Items
- Confirm delivery of the formal redemption notices and completion of both redemptions.
- Verify the final redemption prices, accrued interest payments, and any applicable premiums.
- Determine the funding source and impact on Disney’s cash balances, debt balances, interest expense, and liquidity.
- Review subsequent filings for accounting treatment, including any gain or loss recognized upon redemption.