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Netflix is testing potential investor interest for its first investment-grade bond sale that would help refinance US$1,8 billion of maturities, according to people with knowledge of the matter.
The sale is expected to include notes maturing in at least ten years or longer said the people, who asked not to be identified because the discussions are private.
Morgan Stanley, Goldman Sachs Group, JPMorgan Chase & Co and Wells Fargo & Co arranged an investor call held on Monday.
A spokesperson for Netflix declined to comment.
Representatives from Morgan Stanley, Goldman Sachs and Wells Fargo & Co also declined to comment while JPMorgan didn’t immediately respond.
The potential offering is the first since the world’s largest streaming TV service was upgraded from junk in March last year.
Last week, both Moody’s Ratings and S&P Global Ratings raised Netflix’s ratings higher into investment grade, further securing its blue-chip status.
S&P upgraded Netflix two notches to A from BBB+, citing the company’s “mid-teens percent revenue growth” and material margin expansion that has reduced leverage to 1,1 times from 1,6 times at the end of 2022.
Moody’s cited similar reasons when it elevated Netflix ratings one notch to Baa1 from Baa2, adding that it expects the company to maintain a disciplined approach toward sustaining a “healthy balance sheet and keeping ample liquidity.”
Netflix extended its lead over competitors, adding 8,05 million customers in the second quarter and raising estimates for annual sales and profit margins.
The subscriber results topped expectations in every region around the world.
– Bloomberg
Online Reporter