Netflix raises $400m expansion fund
Netflix has confirmed it is seeking to offer $400 million aggregate principal amount of senior notes due 2024 to institutional investors – funds it expects to use for acquiring original content and expanding into Europe.
The online streaming giant had disclosed plans to raise the additional debt when it reported fourth-quarter 2013 earnings last month. As of December 31st 2013, Netflix had $500 million in 5.375 per cent senior notes, and the company hopes to obtain similar terms for the new offering.
“At $900 million of total long-term debt, we will have an extremely modest debt-to-equity ratio,” CEO Reed Hastings and CFO David Wells wrote in their Q4 letter to shareholders.