Netflix officially announced Monday that it intends to offer $1 billion in long-term debt, which the company plans to use for content acquisitions and other general purposes.
In reporting earnings last month, Netflix CEO Reed Hastings and CFO David Wells told investors they were planning to raise at least a billion dollars of debt, given the company's step-up in content investment as well as the "current favorable interest-rate environment."
"Over the next few years we expect to continue financing our original content expansion with long-term debt," Hastings and Wells wrote in the letter. "As long as the maturities are spread out, and the interest cost is built into our content budgets, we think long-term debt is the best way for Netflix to finance the production of content."
The execs said in the first quarter of 2015, it will increase the amount of cash used for original projects launching in the period. Upcoming series include the third season of "House of Cards," slated to launch Feb. 27. All told, the company this year expects to launch 320 hours of new and returning original series, as well as films, documentaries and stand-up comedy specials, which is three times the amount of original programming Netflix released in 2014, they said.
Netflix noted that the interest rate, maturity date and other terms of the debt will be determined via negotiations with the initial purchasers.
As of the end of 2014, Netflix reported $900 million in long-term debt on its balance sheet. The company issued $400 million in 10-year notes last year, after raising $500 million in 2013.
© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC
Anda sedang membaca artikel tentang
Netflix formally announces plans to raise $1 billion more debt to fund content
Dengan url
http://terdiamtersipu.blogspot.com/2015/02/netflix-formally-announces-plans-to.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Netflix formally announces plans to raise $1 billion more debt to fund content
namun jangan lupa untuk meletakkan link
Netflix formally announces plans to raise $1 billion more debt to fund content
sebagai sumbernya
0 komentar:
Posting Komentar