The Netflix company logo is seen at Netflix headquarters in Los Gatos CA (AFP)
Los Angeles: Netflix Inc, which has been spending billions of dollars on TV shows and movies for its online video service, lined up a $500m revolving credit facility through five lenders including Deutsche Bank AG and Goldman Sachs Group Inc.
The company has the option to increase the credit line by $250m, according to a regulatory filing friday. Netflix, based in Los Gatos, California, plans to use the money for working capital and general corporate purposes.
The company has been borrowing to finance the development of movies and television shows, along with programmes it licenses from other producers. In April, Netflix issued $1.41bn in senior notes for potential acquisitions and strategic deals. The company’s long-term programme budget totals $15.7bn, according to the latest quarterly report.
Netflix have been trading near all-time highs since July 17, when the company reported better-than projected subscriber growth for the second quarter. The shares gained 0.7 percent to $184.04 friday in New York and are up 49 percent this year.
