Netflix Doubling Long-Term Bond Debt

Netflix April 23 announced it is offering upwards of $1.5 billion in senior notes to qualified institutional investors. The interest rate, redemption provisions, maturity date and other terms of the bonds will be determined by negotiations between Netflix and the initial purchasers.

Netflix ended the first quarter (March 31) with $6.5 billion in long-term bond debt – nearly twice the long-term debt ($3.3 billion) during the previous-year period.

Netflix said it intends to use the proceeds from the bond sale for general corporate purposes, which could include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.

The streaming video subscription pioneer is spending $8 billion on original content this year. It ended the first quarter with almost $18 billion in long-term streaming content obligations to third parties – up from $15.3 billion in the previous-year period.

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