You will be redirected back to your article in seconds

Netflix Takes Out New Line of Credit for Up to $750 Million

Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion.

The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit facility by up to an additional $250 million, subject to certain terms and conditions.

Netflix said it will not immediately borrow any amount under the revolving credit facility. In the future, the company may use the cash for “working capital and general corporate purposes,” according to the filing. Netflix’s most cash-intensive activities are acquiring and producing content.

The move is the latest by Netflix to fund its enormous appetite for programming. In its second-quarter 2017 letter to shareholders, Netflix said it will continue to use debt to finance its spending, including on original content, after closing a $1.4 billion offering (1.3 billion euros) in April. The company expects to have negative free cash flow “for many years,” execs said in the letter.

As of June 30, Netflix had $4.84 billion in long-term debt (versus $3.36 billion at the end of 2016). Streaming content obligations — payments related to the acquisition, licensing and production of streaming content over a multiyear period — swelled to $15.7 billion at the end of Q2, up from $13.2 billion in the second quarter of 2016. Cash and equivalents stood at $1.47 billion as of June 30, versus $1.92 billion at the end of 2016.

The lenders for Netflix’s new line of credit are Deutsche Bank, Goldman Sachs, JPMorgan Chase Bank, Morgan Stanley and Wells Fargo.

More Digital

  • Lena Dunham and Jenni Konner

    Lena Dunham and Jenni Konner's Lenny Letter Is Shutting Down (Report)

    Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion. The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit […]

  • Ticketmaster Acquires Blockchain Ticketing Company Upgraded

    Ticketmaster Acquires Blockchain Ticketing Company Upgraded

    Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion. The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit […]

  • Viki - Suspicious Partner

    With DramaFever's Demise, Other Services Step Up to Cater to K-Drama Fans

    Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion. The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit […]

  • Spotify logo is presented on a

    Spotify Revamps Its Mobile App for Paying Subscribers

    Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion. The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit […]

  • Funimation - My Hero Academia: Two

    Sony's Funimation Ends Anime Licensing Pact With Crunchyroll

    Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion. The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit […]

  • The Apple Downtown Brooklyn store grand

    Apple Sets Oct. 30 Launch Event in New York City

    Netflix has whipped out the credit card to potentially spend another half-billion dollars — or more — on content and global expansion. The company has entered into a revolving credit agreement to borrow $500 million, according to a regulatory filing Friday. In addition, Netflix has the option to increase the amount of the revolving credit […]

More From Our Brands

Access exclusive content