Netflix is returning to the U.S. investment-grade bond market for the first time since its debut offering two years ago, selling benchmark-sized notes due in 2036 with initial pricing discussed at approximately 0.95 percentage point above U.S. Treasuries. The company plans to use the proceeds to repay roughly $1 billion of debt maturing later this year and support other corporate expenses, following its first investment-grade bond sale in 2024 that raised $1.8 billion with demand exceeding 10 times the amount offered. The offering comes after Netflix shares have declined approximately 46% over the past year and its bonds due in 2056 traded at around 92.94 cents on the dollar on Monday, their lowest intraday price in a year. BNP Paribas, Morgan Stanley, RBC Capital Markets and Wells Fargo are managing the transaction.
Netflix IncNetflix is issuing new debt to refinance existing obligations, which may signal financial strain after a 46% stock drop and declining bond prices.
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