Feb. 4 (Bloomberg) -- Netflix Inc., the world’s largest subscription streaming service, sold $400 million of bonds to help finance capital spending and potential acquisitions.
The company issued 5.75 percent senior notes due 2024 that yield 313 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The offering comes the week after Moody’s Investors Service boosted the borrower’s credit rating outlook to positive, citing “strong operating performance” and the expectation of further subscriber growth. Netflix, based in Los Gatos, California, is ranked Ba3 at Moody’s and an equivalent BB- by Standard & Poor’s.
The new notes add to its $500 million of 5.375 percent securities that Netflix issued a year ago. Those bonds, which mature February 2021, were valued yesterday at 101.2 cents on the dollar to yield 5.16 percent, according to prices compiled by Bloomberg.
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