Netflix To Seek Over $1 Billion In Debt To Help Pay For Original Programming

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After burning nearly $1.5 billion in cash last year, Netflix says that it’s headed back to the debt market for help to pay for its fast-growing content needs as it expands throughout the world.

The company says it will borrow €1 billion through senior debt notes it will sell outside of the U.S. Details about the interest rate and maturity date are yet to be determined.

The streaming power will use the cash “for general corporate purposes, which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”

Executives told Wall Street last week that they expect to burn more than $2 billion in 2017. As a result, they said, “we will continue to add long-term debt as needed to finance our expansion of original content, including in Q2’17.”

They urged investors not to worry: “Our debt to total cap ratio, at under 10%, is quite conservative compared to most of our media peers at 30-70%, and conservative compared to efficient capital structure theory,” they said.

See more at Deadline.

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