0% notes convert at $85.80 per share; shares sold at $70.00 apiece
By Devika Patel
Knoxville, Tenn., Nov. 22 - Netflix, Inc. said it plans a $200 million private placement of 0% senior convertible notes due Dec. 1, 2018 with Technology Crossover Ventures and a $200 million private placement of stock. As previously reported, the convertibles priced on Nov. 21.
The company will sell about 2.86 million common shares at $70.00 per share to funds and accounts managed by T. Rowe Price Associates, Inc. The price per share is a 6% discount to the Nov. 21 closing share price, $74.47.
The notes initially convert to common stock at a rate of 11.6553, or about $85.80 per share. The conversion price is a 9.92% premium to the Nov. 18 closing share price of $78.06. The company may force conversion after six months.
Settlement of both placements is expected Nov. 28.
Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunning managers for the stock offering, and Morgan Stanley & Co. LLC is the company's advisor for the convertible notes sale.
Netflix is a Los Gatos, Calif.-based movie rental company.
| Issuer: | Netflix, Inc.
|
| Issue: | Senior convertible notes, common stock
|
| Amount: | $400 million
|
| Warrants: | No
|
| Settlement date: | Nov. 28
|
| Stock symbol: | Nasdaq: NFLX
|
| Stock price: | $74.47 at close Nov. 21
|
| Market capitalization: | $3.85 billion
|
|
|
| Convertibles
|
| Amount: | $200 million
|
| Maturity: | Dec. 1, 2018
|
| Coupon: | 0%
|
| Conversion rate: | 11.6553
|
| Conversion price: | $85.80 (approximate)
|
| Conversion premium: | 9.92%
|
| Call: | After six months
|
| Investor: | Technology Crossover Ventures
|
| Pricing date: | Nov. 21
|
|
|
| Shares
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| Amount: | $200 million
|
| Shares: | 2.86 million (approximate)
|
| Price: | $70.00
|
| Investor: | T. Rowe Price Associates, Inc.
|
| Pricing date: | Nov. 22
|
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