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Netflix Plans to Raise $1 Billion More Debt to Fund Content

Monday, 02 Feb 2015 08:29 AM

Netflix announced Monday that it intends to offer $1 billion in long-term debt, which the company plans to use for content acquisitions and other general purposes.

In reporting earnings last month, Netflix CEO Reed Hastings and CFO David Wells told investors they were planning to raise at least a billion dollars of debt, given the company's step-up in content investment as well as the "current favorable interest-rate environment."

"Over the next few years we expect to continue financing our original content expansion with long-term debt," Hastings and Wells wrote in the letter. "As long as the maturities are spread out, and the interest cost is built into our content budgets, we think long-term debt is the best way for Netflix to finance the production of content."

Netflix noted that the interest rate, maturity date and other terms of the debt will be determined via negotiations with the initial purchasers.

As of the end of 2014, Netflix reported $900 million in long-term debt on its balance sheet.

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Netflix announced Monday that it intends to offer $1 billion in long-term debt, which the company plans to use for content acquisitions and other general purposes. In reporting earnings last month, Netflix CEO Reed Hastings and CFO David Wells told investors they were...
netflix, raise, 1, billion, debt
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2015-29-02
Monday, 02 Feb 2015 08:29 AM
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