Netflix to raise $1.5bn in debt for content acquisitions
February 3, 2015
Netflix has unveiled plans to offer $1.5 billion in senior notes and plans to use the proceeds for “general corporate purposes, which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
The company originally said it would raise $1 billion but then later increased the offering to $1.5 billion, with a $700 million tranche of 5.5 per cent senior notes due 2022 and $800 million of 5.875 per cent senior notes due 2025, with the sale expected to close on February 5th.
The news doesn’t come as a surprise. On January 20th, CEO Reed Hastings and CFO David Wells published a note to shareholders that laid out plans to continue to invest in original content.
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