Today, Euro Disney S.C.A announced that the Walt Disney Company has provided them with €150 million revolving credit. This is a type of credit that is extended to consumers, and does not have a time limit or installment payments. Instead, the credit may be used and paid off as needed, generally as many times as is needed.

This additional money is on top of €100 million Disneyland Paris already has tucked away for a rainy day. The original credit facility is dues to expire on 30th September 2014 but the new arrangement will expire for years later, 30th September 2018.  According to the official press release the “These investments correspond to the annual recurring investment budget for fiscal year 2012 and a multi-year expansion of the Walt Disney Studios® Park, which includes a new attraction.”

Yes, you heard it, a NEW attraction. Could this be the Ratatouille attraction, shop and restaurant area we have been waiting for? Don’t expect any news from Disneyland Paris any time soon (that’s if they actually announce this one!) This will be a good teaser to bring back people after the 20th anniversary. Interestingly, it talks about “multi-year” expansion which means the Ratatouille area will not be the only addition. In a recent Q&A with shareholders, Phillippe Gas expressed his concern that Walt Disney Studios needs to become a full day park and it is certainly going to become a priority now the funds are available. Ratatouille is likely to cost somewhere between €100 – €150 million so what are they going to do with the other remaining money? It would be great for Disneyland Paris to lay it out on a plate just as Hong Kong Disneyland did and tell us what to expect in the next few years. We can only hope!

The one question that remains is how will Disneyland Paris pay back a loan of a quarter of a billion Euros? According to their release “Although no assurances can be given, the Group believes it has sufficient funds to finance these and other
necessary investments and repay its borrowings consistent with the scheduled maturities, based on its existing cash position, liquidity from the Existing Facility and the benefit of certain conditional deferrals permitted under the Group’s existing debt agreements.”

Let’s hope so eh?

By Adam

Adam has been a fan of Disney since he was small. He runs the Disneybrit Podcast. He is also the author of several Disney books.

One thought on “Walt Disney Company Gives Disneyland Paris €150 Million to Spend”
  1. EuroDisney SCA is in debt already to the tune of €2billion. In the general scheme of things this amount of credit is small fry as it will be repaid by cash flow and not part of the structural debt.

    With luck we will get a new attraction, although investing the money in existing maintenance projects is as important.

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