Netflix Inc. is once again turning to the junk-bond market tofund new programming as the streaming-video giant seeks to maintainits torrid subscriber growth.

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The $2 billion bond offering, which will be issued in dollarsand euros, comes just a week after the company reported a biggerjump in subscribers than Wall Street analysts expected. The bondswould push the cash-burning company's debt load above $10 billionfor the first time. Netflix's market value has soared almost 70percent this year, to about $140 billion.

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Netflix said in a statement that it will use proceeds from theoffering to continue to acquire and fund new content. The companysaid last week that it expects to burn about $3 billion in cashthis year as it continues to prioritize original series and movies.Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co.,Deutsche Bank AG, and Wells Fargo & Co. are managing the saleof the 10.5-year bonds, according to a person familiar with thematter.

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Impressive subscriber growth and revenues have given the Netflixleeway to continue to spend massive amounts of money to fund itsprogramming. Last week, S&P Global Ratings upgraded thecompany's credit by one level to BB- and changed its outlook tostable from positive. Moody's Investors Service raised its ratingin April, when the company last issued bonds.

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The company's announcement comes a few days after UberTechnologies Inc. raised billions of dollars of cash by tapping thehigh-yield bond market in a private placement. Demand for the debthas been spurred by the worst supply shortage since 2008, accordingto JPMorgan analysts, and the higher demand kept a lid on relativeborrowing costs even as the Federal Reserve hikes interestrates.

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From: Bloomberg

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