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Netflix Is Selling $2 Billion of Junk Bonds to Fund New Shows

  • Streaming network will tap U.S., European bond markets
  • Dollar bonds may yield about 6.375%, euro notes around 4.625%
Bloomberg business news
Making the Bear Case for Netflix
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Netflix Inc. is once again turning to the junk-bond market to fund new programming as the streaming-video giant seeks to maintain its torrid subscriber growth.

The $2 billion bond offering, which will be issued in dollars and euros, comes just a week after the company reported a bigger jump in subscribers than Wall Street analysts expected. While the bonds would push the cash-burning company’s debt load above $10 billion for the first time, the company has seen its equity value skyrocket as it adds subscribers internationally.