Netflix to Raise $400M in Debt, Potentially to Fund Acquisitions

Internet video streamer will refinance $225M in current debt

By Todd Spangler, Multichannel News -- Broadcasting & Cable, 1/29/2013 9:27:31 AM

Netflix may make acquisitions or other "strategic transactions" with its move to raise $400 million in new debt, $225 million of which it plans to use to refinance current debt, the company said Tuesday.

The company said it intends to offer $400 million aggregate principal amount of senior notes due 2021 to institutional buyers. Netflix will use $225 million of the net proceeds to redeem its outstanding 8.5% senior notes due 2017.

Netflix said it intends to use the remaining $175 million of the funds for general corporate purposes, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions.

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