Euro Disney gets financial backing from Walt Disney

Reuters News
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Posted: Oct 06, 2014 1:59 AM

LONDON (Reuters) - Euro Disney <EDLP.PA> said on Monday it had agreed a 1 billion euro funding deal backed by its largest shareholder, the Walt Disney Co <DIS.N>, which includes a share sale and a debt restructuring, to allow it to invest in the business.

Euro Disney, based in an eastern suburb of Paris, is 40 percent owned by parent Walt Disney <DIS.N> and 10 percent by the Saudi prince Al-Waleed bin Talal bin Abdulaziz al Saud.

The plan includes a rights issue of 420 million euros open to all shareholders and backed by Walt Disney. The company said the move would improve the cash position of Euro Disney by about 250 million euros.

In addition, about 600 million euros of the group's debt owed to Walt Disney will be converted into equity, while credit lines extended to Euro Disney by its parent will also be consolidated.

(Reporting by Kate Holton; Editing by Leila Abboud)