Netflix to Raise $1 Billion in Bonds


LOS GATOS, CA — Netflix, Inc. announced it will raise $1 billion in a bond offering, boosting the amount from $800 million in the same day due to high demand from institutional investors.

The bonds pay interest rate of 4.375% and are due in 2026.

Netflix intends to use the net proceeds from this offering to fund content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.

The Notes are being offered to qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S.
persons pursuant to Regulation S under the Securities Act. The sale of the Notes is expected to close on
October 27, 2016, subject to the satisfaction of customary closing conditions. Interest on the Notes will be
payable in cash semi-annually in arrears, beginning on May 15, 2017.

In its most recent financial statement, Netflix reported cash and short-term investments of just over $1.3 billion. The company has over 83 million paid streaming subscribers worldwide.

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