With the phrase ‘content is king’ ringing truer than ever, online streaming giant Netflix Inc (NASDAQ:NFLX) is looking to raise US$1.6bn in new debt to beef up its video offering.
Netflix is issuing the notes to “qualified institutional buyers” and the interest rates and maturity dates will be subject to negotiations.
READ: Netflix to spend up to US$8bn on content next year as it tackles rising competition
Proceeds from the sale will be used for general business purposes, including content acquisition and development.
Only last week the company emphasised its desire to expand its original content offering, which will represent more than a quarter of total programming spending this year and that percentage “will continue to grow”.
Overall, Netflix said it would spend between US$7-8bn on content next year.
READ: Netflix to report strong growth in subscribers in third quarter, boosted by Emmy-winning shows
In last week’s third quarter results, Netflix said it grew net subscribers by 5.3mln in the period to leave it with 109mln subscribers around the world.
At the end of the quarter, the firm had US$4.9bn in debt.
Shares in the streaming service were up 0.4% in pre-market trade to US$194.93. Later they lost 0.40% to US$193.99 each.