Netflix Ups Bond Offer to $2.2 Billion
October 23, 2019
Netflix has amended its original long-term debt offering from $2 billion to more than $2.2 billion.
The SVOD pioneer priced an initial €1.1 billion ($1.22 billion) aggregate principal amount of its 3.625% senior notes due 2030 and $1 billion aggregate principal amount of its 4.875% senior notes due 2030.
The sale of the notes is expected to close on Oct. 25, subject to the satisfaction of customary closing conditions. Interest on each series of the notes will be payable in cash semi-annually in arrears, beginning on June 15, 2020.
Subscribe HERE to the FREE Media Play News Daily Newsletter!
Holders of each series of notes may require Netflix to repurchase the debt upon the occurrence of certain change of control events at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any.
Netflix may redeem either series of notes, in whole or in part, at a price equal to 100% of the principal amount thereof plus a “make-whole” premium and accrued and unpaid interest, if any. On and after March 15, 2030, Netflix may redeem the notes at 100% of the principal amount plus accrued and unpaid interest, if any.
Netflix announced it intends to use the net proceeds for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital, and potential acquisitions and strategic transactions.