Netflix (NFLX, Financials), the global streaming entertainment firm, will make its first appearance in two years in the investment-grade bond market.
It is set to sell notes maturing in 2036, according to a filing with the SEC and a Bloomberg article. The bonds are projected to trade around 95 basis points over equivalent U.S. Treasuries.
Netflix will use the funds to pay down about $1 billion of debt due later this year. The balance will be used for general company purposes.
The company's last big bond sale was in 2024, when it raised approximately $1.8 billion after its credit rating was upgraded from junk status.
That offering contained $1 billion of 10-year notes and $800 million of 30-year debt.
Returning to the market gives Netflix the chance to refinance looming debts while still keeping cash for content, technology, and other operational needs.
The timing comes as the stock is under pressure. Shares dipped roughly 1.9% Monday and are down more than 8% since the second-quarter earnings announcement last week.
Investors will be watching the final price of the deal and if borrowing costs show confidence in Netflix's cash flow, despite worries about slower growth.