Netflix set to issue $2bn of junk bonds

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NETFLIX is once again turning to the junk-bond market to fund new programming as the streaming-video giant seeks to maintain its subscriber growth.

The $2bn (€1.74bn) bond offering, which will be issued in dollars and euros, comes just a week after tit reported a bigger jump in subscribers than expected.

The bonds would push the cash-burning company's debt load above $10bn for the first time. Netflix's market value has soared almost 70pc this year to about $140bn.

The US portion of the 10.5-year bond may yield around 6.375pc, while the euro notes could pay 4.625pc, according to people with knowledge of the matter. Netflix paid less than 6pc when it last tapped the market in April, in part because underlying Treasury yields were lower.