Netflix (NFLX) Announces $200M Senior Note Offering

November 3, 2009 2:05 PM EST

Netflix, Inc. (NASDAQ: NFLX) today announced that it has priced its offering of $200.0 million aggregate principal amount of its 8.50% Senior Notes due 2017 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The offering is expected to close on November 6, 2009, subject to satisfaction of customary closing conditions.

The notes will be senior unsecured obligations of Netflix. Interest will be payable semi-annually at a rate of 8.50% per annum on May 15 and November 15 of each year, commencing on May 15, 2010.

Netflix intends to use the net proceeds of the offering to repay all outstanding amounts under, and terminate, its Credit Agreement, dated as of September 16, 2009, and for possible future stock repurchases and general corporate purposes, including capital expenditures, working capital and potential acquisitions and strategic transactions.

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