Netflix holding investor call for possible first blue-chip bond

Netflix Inc. is sounding out investors on Monday for its potential first high-grade bond sale.

The streaming service is scheduled to hold an investor call from 3:00 p.m. to 4 p.m. New York time. Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. will arrange the call. A senior unsecured bond sale could follow.

The deal would mark Netflix’s first ever bond sale in the investment-grade bond market since shedding its junk rating in 2023. It was upgraded to BBB by S&P Ratings in 2021 and then by Moody’s Ratings in 2023, officially joining the high-grade index.

Last week, both Moody’s and S&P raised Netflix’s ratings higher into investment grade, securing its blue-chip status further.

“Netflix can capitalize on its ascendant credit ratings as it looks to refinance $1.8 billion of notes coming due over the next year, with the potential to issue longer-dated bonds,” Bloomberg Intelligence senior credit analyst Stephen Flynn wrote in a note last week.

The Los Gatos, California-based company has about $14 billion of debt outstanding, according to BI. The notes coming to maturity over the next year are both dollar denominated and in euros.