Netflix is taking on billions more in debt to keep churning out content

Netflix Inc. is planning to issue $2 billion of 10½-year junk bonds later Tuesday in a two-part deal that includes a euro-denominated tranche, as it continues to raise the funds needed to produce its original content.

The company NFLX, +0.33% will likely benefit in the debt sale from positive sentiment stemming from last week’s strong third-quarter earnings beat and a recent credit upgrade from S&PGlobal, as it taps the capital markets for the second time this year, according to CreditSights analysts.

Initial price talk is for a 6.25% yield on the dollar notes and 4.625% on the euro notes.

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