Netflix to Raise $400 Million for Original Content, European Expansion


LOS GATOS: Netflix is looking to gain $400 million in new long-term debt to fund European expansion and the creation of new original shows.

The company intends to issue senior notes due 2024. The new notes would add to $500 million of 5.375 percent securities that Netflix issued a year ago.

The interest rate, redemption provisions and other terms of the notes, will be determined by negotiations between Netflix and the initial purchasers. 

Netflix intends to use the net proceeds from this offering for "general corporate purposes," the company said, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions. In its most-recent set of financials, Netflix pledged substantial European expansion and also reaffirmed its commitment to churning out more original content.