New Issue: Netflix prices $1.6 billion 10.5-year bullet at par to yield 4 7/8%

By Paul A. Harris

Portland, Ore., Oct. 23 – Netflix, Inc. priced a $1.6 billion issue of 10.5-year senior bullet notes (B1/B+) at par to yield 4 7/8% on Monday, according to market sources.

The yield came in the middle of the 4¾% to 5% yield talk. Initial guidance was in the 4¾% to 5% area.

Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.

The Scotts Valley, Calif.-based provider of on-demand internet streaming media plans to use the proceeds for general corporate purposes.

Issuer:	Netflix, Inc.
Amount:	$1.6 billion
Maturity:	April 15, 2028
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC
Co-manager:	Allen & Co.
Coupon:	4 7/8%
Price:	Par
Yield:	4 7/8%
Spread:	256 bps
Call protection:	Make-whole call at Treasuries plus 50 bps, otherwise non-ca1lable
Trade date:	Oct. 23
Settlement date:	Oct. 26
Ratings:	Moody's: B1
	S&P: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	4¾% to 5%
Marketing:	Quick to market

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