Netflix has announced that it plans to issue €1 billion of senior notes through an offer outside the US to non-US persons.
The interest rate, redemption provisions, maturity date and other terms of the notes will be determined by negotiations between Netflix and the initial purchasers.
Netflix says the net proceeds of the offer will be used for general corporate purposes, which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.
In its latest set of results, published last week, Netflix said that its debt to total cap ratio, at under 10%, is quite conservative compared to most of its media peers at 30-70%, and conservative compared to efficient capital structure theory.
As a result, it will continue to add long-term debt as needed to finance its expansion of original content, including in the second quarter of this year.
Netflix had total revenues of $2,637 million in Q1, up 34.7% on the same period in 2016.
They are projected to rise $2,755 million in the second quarter.
