Netflix, Apple boost planned debt offerings

By | February 3, 2015

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Netflix (NFLX) stock surged on Tuesday after the subscription streaming video service boosted its debt offering by 50% to $1.5 billion. The move comes after two ratings services downgraded Netflix’s bond rating after the company announced plans to raise $1 billion in debt last month. Netflix stock was up 3.5%, near 457, in afternoon trading on the stock market today. Netflix will offer $700 million aggregate principal amount of 5.5% senior notes due 2022 and $800 million aggregate principal amount of 5.875% senior notes due 2025. It expects the bond sale to be completed by Thursday. Netflix intends to use the net proceeds from the offering to fund original content production, its international expansion and general corporate purposes. On Monday Standard & Poor’s Ratings Service cut its debt rating on Netflix and turned negative on the streaming video company’s outlook, based on the planned debt offer. On Jan. 23, Moody’s Scalper1 News

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