Netflix (NFLX.US) returns to the US investment-grade bond market after a lapse of two years and plans to sell bonds due in 2036 to repay debts

The Zhitong Finance App learned that streaming giant Netflix (NFLX.US) once again entered the US investment-grade bond market after a lapse of two years and plans to issue US dollar bonds due in 2036. At a time when the company's revenue growth is slowing down and future growth prospects are receiving market attention, this financing has attracted widespread attention from investors.

According to people familiar with the matter, the initial price guide for this batch of bonds was about 95 basis points higher than the yield on US Treasury bonds during the same period.

According to documents submitted by Netflix, the funds from this bond issuance will mainly be used to repay about 1 billion US dollars of debt due later this year, and the remaining funds will be used for general corporate purposes.

This is Netflix's second entry into the bond market since it first issued investment-grade bonds in 2024. At the time, the company successfully raised 1.8 billion US dollars, and the subscription demand exceeded 10 times the distribution scale, and was warmly sought after by investors.

However, this financing comes at a time when Netflix is facing pressure to slow growth. Previously, the company's plans to acquire Warner Bros. failed. Coupled with the company's conservative guidance on future growth prospects, it raised concerns in the market that its growth momentum was weakening.

Affected by this, Netflix's stock price has fallen by a cumulative total of about 46% over the past year. Meanwhile, according to Trace data, the company's bonds due in 2056 fell to 92.94 cents per dollar in the intraday session on Monday, the lowest level in nearly a year, reflecting a decline in risk appetite among bond investors.

The bond was issued by BNP Paribas, Morgan Stanley, Royal Bank of Canada Capital Markets, and Wells Fargo as underwriters.