The Type of Debt Disney Offered to the Public for Sale

Walt Disney Prospectus
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Introduction
The Walt Disney Company based in the United States is an international mass media and entertainment multinational. The company has increased its diversification in a variety of products apart from media in order to ensure continued business development. In 2008, Disney initiated a prospectus plan to its shareholders and prospective investors. The purpose of the plan was to boost investor confidence by offering long-term stock ownership among the existing stockholders and potential stockholders. Furthermore, Walt Disney prospectus was introduced to aid in raising funds required for its expansion strategies. The capital expenditure for the expansion strategies would cost billions of dollars to undertake thus necessitated the company to issue a prospectus that would attract investors. Disney successes are attributed to its strategy to expansively invest in capturing the imagination of millions of its customers by establishing an incredible set of world’s premier quality content that can attain unmatched experiences. The company made several achievements in 2012 including 16 percent increase of turnover to $5.6 billion dollars and 24 percent increase of earnings per share to $3.12. Walt Disney has established itself as a premium brand in the entertainment marketplace through diversifying its entertainment business to cater multiple segments of the market including luxurious cruises, theme parks, movies, and entertainment for children. The enormous market capitalization of over $123 billion offers Disney a stronger competitive advantage in the entertainment industry. Moreover, Disney attributes its strengths from three core competencies including superior technological innovation, excellent continuous developments, and presence of strong organizational culture. Disney growth strategies to international markets provide a myriad of opportunities for the company to promote its product and services to other markets globally. Disney serves over 40 percent of the entertainment industry in the United States. In addition, the technological progress, such as motion movies and games on contemporary digital phones offer enormous incentives for Disney (Narula, 2013).
The type of debt Disney offered to the public for sale
Disney is recognized for offering senior debt securities or subordinated debt securities to the public. Disney debt securities may be junior subordinated or senior subordinated. The debt securities offered to the public might be issued independently or collectively or in exchange for other securities. Disney issued senior debt securities under a debt securities plan over a period and a subordinated debt security indenture covered the issuance of the subordinated debt securities. Disney integrated multiple approaches to ensure successful sale of its securities. Disney discouraged premature redemption of its securities by stipulating that the sold securities would be redeemed or repurchased after maturity, however, investors had the choice of redeeming at the conditions stated by the company. Furthermore, Disney established an effective distribution system for its securities. Disney chose various reputable banks inc...