Disneyland Paris has been forced to secure a refinancing deal with the Walt Disney Company as debts continue to mount.
Burbank, California-based Walt Disney Co is the majority shareholder in Euro Disney, with a 39.8 per cent stake.
Philippe Gas, chief executive of Euro Disney, said in a statement: “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.”
Disneyland Paris has debts totally €1.7 billion. The new financing will be composed of term loans totalling €1.2 billion and a €100 million standby revolving credit facility which will run until 2017.
Gas added: “The Walt Disney Company, 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.”
Disneyland Paris will repay €217 million of debt principal over the next five years, according to a more gradual repayment schedule that will provide for €225 million of additional cash flow.
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