Netflix Announces $400 Million Offering To Fuel Original Content Purchases, European Expansion
Netflix announced on Tuesday that it intends to offer $400 million worth of senior notes due 2024, through an offering to qualified institutional buyers.
Netflix says it intends to use the net proceeds from the offering for “general corporate purposes,” including capital expenditures, investments, working capital and potential acquisitions and strategic transactions.
Variety is reporting that it will specifically use it for acquiring original content and expanding into Europe.
Netflix is apparently looking to launch in France and Germany, as well as some other unspecified European markets soon.
On its recent earnings call, Netflix indicated that original content will be an increasingly big part of its content spending pie.
The offering is subject to market and other considerations, the company says, adding that the interest rate, redemption provisions and other terms of the Notes will be determined by negotiations between the company and the initial purchasers.
Image: Netflix CFO David Wells via YouTube