Despite the roadshows crowding high yield bond markets this week, Netflix could not help but draw most attention from investors. Its $2.2bn-equivalent euro and dollar issue on Wednesday was increased and is said to have been three times covered. While the company has $10bn of capital market debt outstanding already, it owes more than $27bn long term to its content providers.
Netflix said in its most recent results that it was going to keep tapping the debt markets to fund growth, but expected that its cashflows would improve from 2020 or so, and that it would increasingly become self-funding.
“I think the message to debt investors is: 'you better get in