Netflix has proposed a new offering of $800 million in senior notes, the company announced today. The proposed $800 debt raise follows a similar $1.5 billion senior notes raise priced in February, 2015. Netflix’s stated aim in raising the new funding is to provide liquid assets it can use to acquire content, make investments, acquire targets and engage in strategic transactions, as well as help with general business expenses.
Netflix has previously used this kind of senior debt offering periodically throughout its history in order to fund new content initiatives and other aspects of the business, including a $200 million offer in 2009 and a $400 million offer in 2013. The addition of more debt could affect Netflix’s credit rating, but the company is also coming off of a particularly strong quarter where its subscriber numbers showed significant improvement.