Netflix (NFLX.US) has returned to the US investment-grade bond market after a two-year hiatus. It plans to issue bonds due in 2036 to be used for debt repayment.

Streaming giant Netflix (NFLX.US) has returned to the US investment-grade bond market after a two-year absence, with plans to issue USD bonds maturing in 2036. As the company's revenue growth slows down and its future growth prospects draw market attention, this financing has sparked widespread investor interest. According to sources, the initial price guidance for this batch of bonds is about 95 basis points higher than the yield on comparable US Treasury bonds. According to documents submitted by Netflix, the proceeds from this bond issuance will be mainly used to repay around $1 billion of debt due later this year, with the remaining funds used for general corporate purposes. This marks Netflix's return to the bond market since its first investment-grade bond issuance in 2024, when the company successfully raised $1.8 billion with subscription demand exceeding the issuance size by 10 times, attracting enthusiastic investors. However, this financing comes at a time when Netflix is facing pressure from slowing growth. Previously, the company's plans to acquire Warner Bros. Discovery did not materialize, and with the company's guidance on future growth prospects becoming more conservative, it has raised concerns in the market about its weakening growth momentum. As a result, Netflix's stock price has fallen by about 46% over the past year. Meanwhile, according to Trace data, the company's bonds maturing in 2056 briefly dropped to $0.9294 per dollar on Monday, hitting its lowest level in nearly a year, reflecting a decrease in bond investors' risk appetite. The bond issuance is underwritten by BNP Paribas, Morgan Stanley, Royal Bank of Canada Capital Markets, and Wells Fargo & Company.