Disney District Reassures Investors on Bonds in DeSantis Fight
(Bloomberg) -- The special district that encompasses Walt Disney Co.’s Florida resort assured investors their debt is going to be paid and said it’s exploring various options as the state legislature is poised to pass a bill that could dissolve the issuer.
The Reedy Creek Improvement District, where the Disney World theme park and resort are based, reminded bond holders that Florida has pledged to fulfill the terms of any agreement made with holders of district bonds and will not in any way “impair the rights and remedies” of holders, according to a filing posted Thursday to the Municipal Securities Rulemaking Board EMMA website.
Florida’s Republican-controlled house will vote Thursday on a measure to strip Disney of its self-governance privileges in the state, escalating a feud between Governor Ron DeSantis and the entertainment giant. The legislation could lead to the dissolution of Reedy Creek, created in 1967 to allow Disney to carry out certain municipal functions on its own. The district has about $1 billion of municipal bonds outstanding, according to data compiled by Bloomberg.
“In light of the State of Florida’s pledge to the District’s bondholders, Reedy Creek expects to explore its options while continuing its present operations,” the filing said. This includes “paying debt service on its ad valorem tax bonds and utility revenue bonds, complying with its bond covenants and operating and maintaining its properties.”
Related: Disney-DeSantis Battle Stings Muni Debt From Special District, DeSantis Rush to Battle Disney Begs $1 Billion Debt Question (1)
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