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Netflix to issue $1.5 billion of junk bonds to finance its massive spending plans

Netflix Inc. is once again tapping the corporate bond market with plans to issue $1.5 billion in high-yield, or “junk,” bonds to help finance its huge spending plans for 2018.

The company said it will use proceeds of the deal for working capital, including content acquisition and production, and even for potential acquisitions or other transactions. The company has said it will spend between $7.5 billion and $8 billion on content this year.

CreditSights said the deal is a single tranche of 10.5 year, non-call for life senior notes. Early price talks suggests a range of 5.75% to 6.00%, said analysts Lindsay Pacia Gibbons and Jay Mayers.

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