The Walt Disney Company’s
“Sleeping Beauty” Bonds*
Disney Brothers Studios was founded in October 1923. Disney’s first cartoon character,
Mickey Mouse, also dates from 1923. In the early 1990s, the Walt Disney Company (“Disney”)
continued to focus on the entertainment business. In fiscal 1991, theme parks and resorts
accounted for approximately 46% of Disney’s total revenues, including the original Disneyland
Park and Disneyland Hotel in California, Disney World destination resort in Florida, and Euro
Disney in France. The Company also received royalties based on Tokyo Disneyland’s revenues.
Disney’s motion picture segment accounted for another 42% of total revenues and
included live-action and animated movies (ranging from Pinocchio to Aladdin) as well as The
Disney Channel, and KCAL, a Los Angeles television channel. Motion pictures were distributed
under the names Walt Disney Pictures, Touchstone Pictures and Hollywood Pictures.
Disney’s consumer products segment accounted for the remaining 12% of fiscal 1991
revenues. Fees came from licensing the Walt Disney name, Disney characters, books, songs and
music. In addition, the Company sold Disney-related products through the Disney Store and
On August 18, 1992, Disney filed a prospectus with the Securities and Exchange
The Walt Disney Company (“Disney”) may offer from time to time its senior unsecured debt securities
consisting of notes, debentures or other evidence of indebtedness (the “Debt Securities”), at an aggregate
initial offering price of not more than $1,000,000,000 or, if applicable, the equivalent thereof in any other
currency or currencies.
On July 21, 1993, Disney filed a pricing supplement to the August 1992 prospectus
announcing the issuance of $300 million of bonds that will mature on July 15, 2093 (see Exhibit
1). Amid some controversy (see Exhibit 2), but apparently high demand from pension funds
and insurance companies, Disney...