Euro Disney has agreed a €1 billion funding deal backed by its largest shareholder, the Walt Disney Company.

The deal includes a share sale and a debt restructuring to allow it to invest in the business.

The plan includes a rights issue of €420 million open to all shareholders and backed by Walt Disney, Reuters reported.

The company said the move would improve the cash position of Euro Disney by about €250 million.

In addition, about €600 million of the group’s debt owed to Walt Disney will be converted into equity, while credit lines extended to Euro Disney by its parent will also be consolidated.

Euro Disney is 40% owned by parent Walt Disney and 10% by Saudi prince Al-Waleed bin Talal bin Abdulaziz al Saud.