Netflix to Raise $1 Billion in Foreign Debt Financing for Original Content and More

Netflix has announced that it intends to raise $1.08 billion USD (€1 billion) through an offering of senior notes outside the United States to non-US persons and to qualified institutional buyers, according to a statement issued by the company.

In a financial statement, Netflix said that it intends to use the net proceeds from the offering for “general corporate purposes” – which it said may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions, according to a new report from Venture Beat.

Netflix said that, subject to market and other considerations, it would offer the €1 billion aggregate amount of senior notes through an offering outside of the United States to “non-US persons,” and to “qualified institutional buyers.”

“The interest rate, redemption provisions, maturity date and other terms of the notes will be determined by negotiations between Netflix and the initial purchasers,” said Netflix in the statement.

“The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements,” the statement continues.

One week ago, the streaming giant revealed its first-quarter 2017 financial results. For the three months ending on March 31, Netflix reported revenue of $2.6 billion and earnings of 40 cents a share.

This number easily topped the slightly less-than $2 billion in revenue and earnings of 6 cents a share the company pulled in during the same time last year, and exceeded analyst estimates of 37 cents a share in earnings. Revenue was right in line with analyst projections.

As the company’s content spending has increased, so has the cost to promote its projects. For example, Netflix said as part of its latest earnings report last week that it would spend more than $1 billion in 2017 to market its content.

Original Netflix content means the company retains full control over distribution and availability. Netflix Originals launch worldwide simultaneously and never expire, unlike some licensed content the company pays for from major studios.