Netflix has launched a $400 million capital raising after a disastrous quarter in which its shares have fallen more than 70 per cent. Netflix has sold $200 million of convertible senior notes to Technology Crossover Ventures, a long-time shareholder, and has launched a $200 million share offering for the balance

When the bonds are converted, it will dilute the holdings of existing Netflix shareholders by about 10 per cent. Netflix will pay no interest on the notes, which mature in 2018, although TCV has the right to convert them to equity when the company’s shares hit $85.80. Netflix shares are around $74.50 this week

Netflix said in a regulatory filing that it intended to use the net proceeds for general corporate purposes, including working capital and capital expenditures. The company told the Financial Times that the bond sale was an “opportunistic fundraising” at little cost to the company during a time of volatile market conditions.

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