According to a recent release, the new bond offering will be issued in dollars and euros and brings the company’s total junk bond debt to $10 billion.
“Netflix intends to use the net proceeds from this offering for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions,” said Netflix, which noted last week that it’s planning to spend $3 billion in cash this year.
The terms of the debt offering, including interest rate, redemption provisions and maturity date, have yet to be finalized with the purchasers.
This news comes as the market for content streaming is becoming exponentially more competitive, as major studios and media giants have begun making bets on the future of TV and cinema.
Most recently, we reported that AT&T’s (T) WarnerMedia is planning on launching its own streaming service, which will include HBO, Turner and Warner Bros. content. Meanwhile, Apple (AAPL), a company with a massive cash hoard that could easily be spent on new content, is planning to give away its original content for free to Apple device owners.