Netflix NASDAQ:NFLX is returning to the bond market for the first time in 2 years as it looks to refinance debt and cover general corporate expenses.
According to an SEC filing, Netflix plans to sell investment-grade notes due in 2036. Bloomberg reported that the bonds are expected to price at roughly 95 basis points above comparable U.S. Treasuries.
Netflix runs one of the world's largest streaming platforms, generating revenue from subscriptions, advertising and a growing lineup of live programming. Its stronger balance sheet and cash generation helped the company move from junk status to investment grade.
The company plans to use part of the proceeds to repay about $1 billion of debt maturing later this year. Netflix last tapped the bond market in 2024, raising $1.8 billion through 10-year and 30-year notes carrying coupons of roughly 4.9% and 5.4%.