A spokesperson for Netflix declined to comment. Representatives from Morgan Stanley, Goldman Sachs and Wells Fargo & Co also declined to comment while JPMorgan did not immediately respond.
‘Healthy balance sheet’
The potential offering is the first since the world’s largest streaming TV service was upgraded from junk in March last year.
Last week, both Moody’s Ratings and S&P Global Ratings raised Netflix’s ratings higher into investment grade, further securing its blue-chip status.
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S&P upgraded Netflix two notches to A from BBB+, citing the company’s “mid-teens percent revenue growth” and material margin expansion that has reduced leverage to 1.1 times from 1.6 times at the end of 2022.
Moody’s cited similar reasons when it elevated Netflix ratings one notch to Baa1 from Baa2, adding that it expects the company to maintain a disciplined approach toward sustaining a “healthy balance sheet and keeping ample liquidity”.
Netflix extended its lead over competitors, adding 8.05 million customers in the second quarter and raising estimates for annual sales and profit margins. The subscriber results topped expectations in every region around the world.
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Netflix has about US$1.8 billion of dollar and euro-denominated bonds maturing next year, according to data compiled by Bloomberg, and about US$12.2 billion in long-term debt as of June 30, according to a company filing.
The company last tapped the primary debt markets in April 2020 when orders for its US$1 billion offering, split between dollars and euros, were about ten times the offering size, according to people familiar with the matter.
