Netflix is selling bonds as it continues to bolster its original content in the face of expanding competition.
The company is offering around $2 billion of bonds between dollars and euros, according to a statement Monday. The proceeds of the sale will be used for general corporate purposes, which may include content acquisitions, production and development and potential acquisitions.
The dollar-denominated 10.5-year bonds, which can’t be bought back, may yield around 5 percent, while the euro notes could pay in the high 3 percent range, according to people with knowledge of the matter, who asked not to be identified as the details are private. Given Netflix’s current trading levels, it could realize a blended coupon rate of less than 4.25 percent, according to Bloomberg Intelligence analyst Stephen Flynn.
