Disney Taps Bond Market for First Time Since 2020

This article first appeared on GuruFocus.

The Walt Disney Company (NYSE:DIS) sold senior bonds on Tuesday in a multi-tranche deal, its first investment-gradeissuance since 2020. The bonds run from three to ten years. Disney has not said how large the deal is.

According to Bloomberg Intelligence, the company is expected to use the cash mainly to repay debt and support liquidity, with flexibility for shareholder returns and strategic investments. Disney has $2.6 billion of bonds and loans due later this year.

The offering comes as large, investment-grade deals continue to draw demand. Earlier this week, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) raised $20 billion in a bond offering that generated more than $100 billion of demand.