Netflix just went deeper into hock: The company announced the pricing of unsecured bonds in a transaction raising around $2.2 billion, giving it more cash to invest in content, real estate and infrastructure.
Netflix, in its boilerplate text announcing the bond sale said, said it plans to use the cash for general “corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”
“Pro forma for this debt issuance, Netflix’s gross leverage will be 7.5x for the last twelve months ended March 31, 2019,” the firm said in the rating assignment. However, it expects Netflix’s gross leverage will fall to below 5.5x by the end of 2019 and below 5.0x by the end of 2020. Gross leverage refers to a company’s gross debt as a ratio of annual EBITDA .
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Source: BusinessTimes - 🏆 15. / 51 Read more »