The bond offering marks the seventh time in four years that Netflix is raising $1 billion or more through debt. What Is a Junk Bond?
With that latest debt deal, its long-term debt will climb to around $12.5 billion. Quotes delayed at least 15 minutes. Prices on Netflix’s existing debt dropped across the board on Monday, with the biggest drops in a bond coming due in 2026, down by about 3 cents to 91.5 cents on the dollar.
The streaming giant last raised $2.2 billion in junk bonds in April 2019. report, Bloomberg Intelligence analyst Stephen Flynn said the upgrade may give Netflix the support to sell $2 billion of bonds to boost liquidity and pay for rising programming costs. Netflix (NFLX) Simulator Simulator ... Everything You Need to Know About Junk Bonds.
The Netflix Inc.-Bond has a maturity date of 2/15/2025 and offers a coupon of 5.8750%. Netflix Snags Lowest Junk Bond Yields in Binge-Watching Frenzy - Bloomberg Netflix Inc. pulled in record subscribers after people hunkered down at home amid the virus pandemic. Netflix is amassing more debt to fund its ambitious growth plans. Netflix has had impressive growth since 2014. Borrowers of all types have been able to tap high-yield bond markets this week. By.
Shares dropped 1.26% on the news.
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Its yearly net income has gone from 266 million to 1.8 billion.
Netflix and Delta Are the Latest Companies to Sell High-Yield Bonds.
“Netflix may issue new junk bonds for several more years as proceeds from debt sales fuel not only free-cash-flow deficits, but also repayment of bond principal. Shares dropped 1.26% on the news.
FACEBOOK TWITTER LINKEDIN By Investopedia Staff. The payment of the coupon will take place 2,0 times per biannual on the 15.10.. Netflix Inc. is once again turning to the junk-bond market to fund new programming as the streaming-video giant seeks to maintain its torrid subscriber growth. Junk bonds are bonds that carry a higher risk of default than most bonds issued by corporations and governments.
The Netflix Junk Bonds. Netflix had to become a content producer to compete with other streaming services.
Yesterday Netflix announced that it will return to the markets with a $2 bln junk bond offering.
About 12 of the 14 billion dollars of Netflix debt is made of junk bonds. It will need to double that in order to pay its first round of bonds starting in 2027. To raise the money to pay for all that content, the company turned to junk bonds.
HF Markets - October 24, 2018.
Updated Aug 17, 2019. Netflix is launching a new $2 billion debt offering to fund its cash-burning content business.
Offers may be subject to change without notice.