Netflix, Inc. (NASDAQ:NFLX) has announced that they are seeking to offer $400 million aggregate principal amount of 10-year senior notes due 2024 to institutional investors for acquiring original content and to expand into Europe. Netflix disclosed the plans to raise additional debt when reporting Q4 2013 earnings last month. Netflix had around $500 million in 5.375% senior and the company is hoping to obtain similar terms for the new offering.
Netflix?s debt-to-equity ratio would be around 0.67 if calculated using long-term debt. Their debt-to-equity ratio would equal 3.36 if accounted using total liabilities including $1.3 billion in non-current content liabilities as of the end of 2013.
Netflix said that they are also going to increase investments in international expansion, including Europe in 2014.
Netflix also said that they have ordered a third season of the political drama “House of Cards” one week before season 2 is going to debut. “House of Cards” season 2 is premiering on February 14, 2014. All 13 episodes will be available at once worldwide. The first season received three Emmy awards.
[Source: Variety (1)(2)]