Netflix Plans to Raise $2 Billion More Through Bonds, Bringing Debt Load to Over $12 Billion
Netflix is going back to the debt markets — to fuel more content spending — announcing plans to issue $2 billion in unsecured bonds.
The proposed offering would be the seventh time in four years that Netflix is raising $1 billion or more through debt, and would bring its long-term debt to around $12.3 billion if the transaction is completed.
Netflix said the $2 billion aggregate notes will be issued in two series, indicating the principal amount will be in both U.S. dollars and euros. As of March 31, Netflix reported $10.305 billion in long-term debt on its balance sheet.
The streaming giant — which needs cash to cover a content budget projected to be $15 billion in 2019 — last raised $2 billion in junk bonds in October 2018. In that offering, Netflix issued €1.1 billion ($1.26 billion) in notes at 4.625% due 2029 and $800 million of its 6.375% notes, also due 2029.
Netflix also has billions in off-balance-sheet content-spending obligations, most of which is due within the next five years.
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