Tags: netflix | bonds | debt | content | fund | pay

Netflix to Sell $2 Billion of Bonds to Help Fund More Content

netflix logo amid cash

Mohamed Ahmed Soliman | Dreamstime.com

Tuesday, 23 April 2019 03:10 PM

Netflix is going back to the debt markets -- to fuel more content spending -- announcing plans to issue $2 billion in unsecured bonds.

The proposed offering would be the seventh time in four years that Netflix is raising $1 billion or more through debt, and would bring its long-term debt to around $12.3 billion if the transaction is completed.

Netflix said the $2 billion aggregate notes will be issued in two series, indicating the principal amount will be in both U.S. dollars and euros. As of March 31, Netflix reported $10.305 billion in long-term debt on its balance sheet.

The streaming giant -- which needs cash to cover a content budget projected to be $15 billion in 2019 -- last raised $2 billion in junk bonds in October 2018. In that offering, Netflix issued EUR1.1 billion ($1.26 billion) in notes at 4.625% due 2029 and $800 million of its 6.375% notes, also due 2029.

Netflix (NFLX) also has billions in off-balance-sheet content-spending obligations, most of which is due within the next five years.

© 2019 Thomson/Reuters. All rights reserved.

   
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Netflix is going back to the debt markets -- to fuel more content spending -- announcing plans to issue $2 billion in unsecured bonds.
netflix, bonds, debt, content, fund, pay
174
2019-10-23
Tuesday, 23 April 2019 03:10 PM
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