|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the DIS 10-K filed Dec 7, 2005. Euro Disney – CDC
loans. Pursuant to Euro Disney’s
original financing and the terms of a 1994 financial
restructuring, Euro Disney borrowed funds from the CDC. As of
October 1, 2005, these borrowings consisted of
approximately
€243 million
($293 million at October 1, 2005 exchange rates) of
senior debt and
€278 million
($335 million at October 1, 2005 exchange rates) of
subordinated debt. The senior debt is secured by certain fixed
assets of Disneyland Resort Paris and/or the underlying land,
whereas the subordinated debt is unsecured. Interest on the
senior debt is payable semiannually, and interest on the
subordinated debt is payable annually. The loans bore interest
at a fixed rate of 5.15% and mature from fiscal year 2015 to
fiscal year 2024. In accordance with the terms of the Euro
Disney restructuring (see Note 4), principal payments
falling between 2004 and 2016 will be deferred by
3.5 years. In return, the interest rate on principal of
€48 million
($58 million at October 1, 2005 exchange rates) was
increased to 7.15%, the interest rate on principal of
€43 million
($52 million at October 1, 2005 exchange rates) was
increased to 6.15%, and
€10 million
($12 million at October 1, 2005 exchange rates) of
principal was prepaid effective February 23, 2005. Also,
pursuant to the terms
-102-
of the restructuring,
€125 million
($151 million at October 1, 2005 exchange rates) of
subordinated loans were converted into senior loans during
fiscal year 2005.
Euro Disney also executed a credit agreement with CDC to finance a portion of the construction costs of Walt Disney Studios Park. As of October 1, 2005, approximately €441 million ($532 million at October 1, 2005 exchange rates) of subordinated loans were outstanding under this agreement. The loans bear interest at a fixed rate of 5.15% per annum, unless interest or principal payments are deferred under the provisions of the loans, during which time the interest rate on the deferred amounts is the greater of 5.15% or EURIBOR plus 2.0%. The loans mature between fiscal years 2015 and 2028. Also, pursuant to the restructuring, the CDC agreed to forgive €2.5 million ($3 million at October 1, 2005 exchange rates) of interest on these loans per year starting December 31, 2004 and continuing through 2011 and to conditionally defer and convert to subordinated long-term debt, interest payments up to a maximum amount of €20 million ($24 million at October 1, 2005 exchange rates) per year for each of the fiscal years 2005 through 2012 and €23 million ($27 million at October 1, 2005 exchange rates) for each of the fiscal years 2013 and 2014.
|
| |||||||
