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Netflix will place its bonds to raise money for new content

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Netflix will place its bonds to raise money for new content
October 22
09:00 2018

Netflix streaming service plans to place bonds worth $ 2 billion. The funds raised in this way will be spent on the production of series and films.

According to the company, about $ 8 billion will be spent on creating content, which is 2 billion more than last year. The company is entering the market in search of additional funds. Netflix has already had such an experience. In April, the company got about $ 2 billion with the help of bonds, while in October this year it managed to raise $ 1.6 billion.

The company expects a negative financial flow in 2018 and 2019, but in 2020 the situation will begin to improve.

At the end of September, the debt of Netflix was $ 8.3 billion, which significantly exceeded the last year end (then the debt amounted to $ 6.5 billion). In 2017, the company allocated $ 238 million for debt servicing. For comparison, in the first half of this year, it was spent $ 292 million to service the company’s debt.

As estimated by the agencies S & P and Moody’s, Netflix has got not the best ratings – “BB-” and “Ba3” respectively.

 

The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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