![Netflix Raises $1 Billion More Debt](http://web.archive.org./web/20161025225526im_/https://pmcvariety.files.wordpress.com/2016/07/stranger-things-netflix-recap.jpg?w=670&h=377&crop=1)
UPDATED, 5:10 p.m. PT: Netflix said it is raising $1 billion through a new debt offering, bringing its long-term debt load to more than $3 billion.
The offering was upsized from an aggregate principal amount of $800 million originally announced Monday morning. The debt transaction is expected to close on Oct. 27, subject to customary closing conditions.
As of Sept. 30 Netflix had $2.37 billion in long-term debt. Execs had previously said the company would be seeking to raise additional debt.
In announcing the offering, Netflix issued a boilerplate statement about the new debt, saying it intends to use the funds “for general corporate purposes,” which may include content acquisitions, capex, investments, working capital and potential acquisitions and strategic transactions.
But a significant portion of its spending is related to content, and Netflix as a long-term goal is targeting about 50% of the TV shows and movies on its service to be original productions. In 2017, Netflix has said content spending will be about $6 billion on a profit-and-loss basis.
Upcoming Netflix originals slated for 2017 include season 2 of popular supernatural drama “Stranger Things” (pictured above), street-hero series “Marvel’s Iron Fist,” the third and final season of “Bloodline,” and a talk show from Bill Nye. The company recently bowed season 3 of “Black Mirror,” a mind-bending sci-fi anthology series, and season 2 of “Narcos” (renewed for two more seasons). On Nov. 4, Netflix is set to premiere “The Crown,” a drama chronicling the early life of Queen Elizabeth II.
Netflix’s streaming-content obligations at the end of the third quarter of 2016 were $14.4 billion (costs that are amortized over the life of the license terms), up $1 billion sequentially. The company said the increase reflects the addition of both new original and non-original content to its library, as well as expanded rights for new territories.
Netflix’s $1 billion in new debt will carry an interest rate of 4.375% with the senior notes due 2026. The notes will mature on Nov. 15, 2026, unless Netflix repurchases or redeems them earlier.
They could save a ton of money by laying off the people who keep making Netflix’s interface intrusive and annoying!
Seems like Toad Spangler is enjoying seeing a non Time Warner company have financial trouble. You are a cooperate shill, Toad. Sleep well.
what’s their gross annual revenue?
6.75 billion in 2015, will be close to 8 this year.
They’re raising money by offering shared, not debt. What’s the point of raising debt? Editors?
You’re incorrect, this is a debt offering.
Todd, either way, when communicating to the public it’s generally just considered raising capital. They’re raising capital via debt offering. You don’t “raise debt”, you “raise capital”. The headline seems like an thinly veiled effort to spin a negative tone. The only way it works is by altering the typical meaning of the term “raise” within this context.
“Raising debt” is a common way of referring to this type of financing
Netflix could have saved 90 million just from not buying a Will Smith movie,
They could save even more if they drop Adam Sandler like the bag of shit he is.
…but it is crap.
Adam Sandler movies are like the bad movies that you can’t help but love – at least to everyone I know. I’ve watched Sandler since I was a kid, so he’s a familiar face, and his movies aren’t bad to the point that they’re boring. They’re at least somewhat entertaining imo and just cause you don’t like them, doesn’t mean they don’t get netflix money
Delete your online presence, you are a stereotypical P-O-S, therefor, your content is redundant.
Adam Sandler plays well overseas. Just because something is crap doesn’t mean it doesn’t pay its way.