Netflix has announced plans to raise US$1.6 billion from investors, a week after the SVOD giant said it plans to spend US$7 billion to US$8 billion on content in 2018.
Netflix will raise the cash through a bond offering, with the senior notes due to mature on April 15, 2028, unless earlier repurchased or redeemed.
In a statement, the company said it will use the cash for “general corporate purposes”, which may include “content acquisitions, production and development.”
It also said that the cash might be used for capital expenditures, investments, working capital and potential acquisitions and strategic transactions.
Netflix said that the sale of the Notes is expected to close on October 26, 2017, subject to the satisfaction of customary closing conditions, and that interest on the notes will be payable in cash semi-annually in arrears, beginning on April 15, 2018.
The news comes after Netflix upped its commitment to original content during its third quarter earnings call last week.
As well as spending up to US$8 billion on a profit-and-loss basis in 2018, Netflix also announced plans to release about 80 films next year.
The company said it has US$17 billion in content commitments over the next several years, and has been raising significant amounts of money from the stock market to help fund these.
Speaking on Netflix’s Q3 earnings call, chief content officer Ted Sarandos said the company is “producing at larger and larger scale outside the United States”.
Netflix added 5.3 million members globally in the third quarter of 2017, up 49% year-on-year and better than its guidance of 4.4 million net additions.
Year-to-date Netflix added 15.5 million members, up 29% compared to a year earlier, as it reported strong appetite for its original series and films alongside the wider global adoption of online video.