The sky is brighter over Disneyland Paris today, and especially over the Walt Disney Studios. I've told you recently that we'll have early January an announcement about DLP future, and here it is, as DLP officially announced today that "Euro Disney obtains a 150M € additional standby revolving credit facility from The Walt Disney Company in connection with an approval from its lenders to increase its investments." Here is the official release:
"(Marne-la-Vallée, January 10, 2012) Euro Disney S.C.A. (the "Company"), parent company of Euro Disney Associés S.C.A., operator of Disneyland® Paris (together the "Group"), announces that, on January 6, 2012, it has obtained an additional standby revolving credit facility (the "Additional Facility") of € 150 million from The Walt Disney Company. This Additional Facility expires on September 30, 2018 and was advanced in connection with the approval from its lenders to increase the Group’s investments by up to € 250 million. 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. The Additional Facility is separate from the € 100 million existing standby revolving credit facility (the "Existing Facility"), which expires on September 30, 2014 and is still undrawn. The other terms and conditions of the Additional Facility are substantially the same as the Existing Facility.
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."
What does this mean, in clear? In clear, it means that DLP now have the money to build the Ratatouille dark ride as well as the mini land around the ride. It also means that the banks probably refused to deliver the cash without a kind of guarantee from the WDC. Now that the park have it works should begin anytime soon as they need two years to build the ride and land. You probably won't be surprised to learn that 150M € is more or less the cost of the Ratatouille ride, so basically what is happening is that the WDC provides to DLP the needed amount to build the ride ...money which will go back for a big part in the pocket of Disney as DLP is of course buying the new attractions to WDI, i.e Disney. Are not they smart at Burbank?
That said, even after paying for the Ratatouille ride the park will still have a credit facility of 100M €, that they had before today's announcement and that they can "use" until 2014. For sure you can build other rides with 100M € and we will know soon what the park expect to do with it. Although their priority is to expand the WDS chafes are that they will use a small part of this money to enhance some DLP ride - hello Jack Sparrow AAs in POTC - or a new placemaking in another part of the WDS, and why not another ride. In the meantime, today is a happy day for DLP fans as this time, this is it, a major E-Ticket ride is on its way!
Picture: copyright Disney
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