Netflix Issues $1.5 BILLION in New Debt to Help Fund Content

Digital Bucket says:

With a market capitalization currently north of $ 27 Billion Wall Street darling Netflix has a few options your average TV production company does not: Debt issuance. Netflix just issued another $1.5 BILLION in debt, which according to Stream Daily will be used at least in part to help fund new original content. After all, bringing House of Cards back for a third season certainly won’t come cheaply. Variety has the details.

by Todd Spangler, Variety:

Netflix is raising $1.5 billion in additional long-term debt — up from its original $1 billion target, announced earlier Monday — the proceeds from which the company said it plans to use for content acquisitions and other general purposes, including potential acquisitions.

The company late Monday announced the pricing of an offering of $700 million aggregate principal amount of 5.50% senior notes due 2022 and $800 million aggregate principal amount of 5.875% senior notes due 2025.

Netflix said the sale of the debt is expected to close Feb. 5, 2015, subject to usual closing conditions.

Read More @ Variety.com