Netflix Prices $500 Million in DebtInternet video streamer will refinance $225M in current debt 1/29/2013 05:37:36 PM Eastern
Netflix announced the pricing of an offering of $500 million
in debt after market close Tuesday -- after the company had earlier
in the day said it was seeking to raise $400 million in debt financing --
which it plans to use for general corporate purposes, including funding
original TV series as well as "potential acquisitions and strategic
Netflix said the sale of the notes is expected to close on
Feb. 1, subject to usual closing conditions. Interest on the notes will accrue
at a rate of 5.375% per year, and will be payable in cash semi-annually in
arrears, beginning on August 1, 2013; the Notes will mature on Feb. 1, 2021,
unless earlier repurchased or redeemed.
Netflix will use $225 million of the net proceeds to redeem
its outstanding 8.5% senior notes due 2017.