Walt Disney Co. borrowed $800 million Tuesday, issuing its first batch of so-called floating-rate notes since 2007. Floating-rate notes are a type of debt that pay investors an interest rate that resets every quarter, and Disney was among a small club of companies able to sell theirs at rates below the London interbank offered rate, or Libor, since the financial crisis.Floating-rate notes enable companies to sell bonds tied to a different benchmark than those linked to U.S. Treasurys, offering diversity for buyers wary of rising interest rates. http://www.4-traders.com/THE-WALT-DISNEY-COMPANY-4842/news/D...Fitch Ratings has assigned an 'A' rating to The Walt Disney Company's proposed offering of two-year unsecured floating rate notes. The Rating Outlook is Stable. Approximately $17.5 billion of debt was outstanding as of Dec. 29, 2012. A complete list of ratings is provided at the end of this release. Proceeds will be used for general corporate purposes. Fitch expects the company to use the proceeds of this issuance to term-out commercial paper (CP) outstanding, which totaled $3 billion at Dec. 29, 2012. The notes will be issued under Disney's existing indenture dated Sept. 24, 2001, and will be pari passu with all existing debt. Similar to existing bonds, there are no financial covenants. http://www.reuters.com/article/2013/02/12/idUSWNB0033E201302...FuskieWho is guessing that this debt is earmarked for rising costs for building out Shanghai Disney...
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