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Netflix to Borrow Another $1 Billion With Record High Cash

  • Streaming giant tapping junk bond market after earnings beat
  • Stock and bonds have surged as people spend more time at home
Photographer: Gabby Jones/Bloomberg
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Netflix Inc. is selling new junk bonds, even as the company sits on a record high cash balance and turned its first quarter of positive cash flow in six years.

The streaming giant is looking to borrow $1 billion between dollars and euros to fund content acquisitions and production, among other general corporate purposes, according to a statement Wednesday. The five-year dollar securities may yield around 3.75%, not far off that of a low investment-grade rated company, according to a person with knowledge of the matter. Levels on the euro portion will be released Thursday, the person said, though earlier whispers indicated a rate near 3.5%.