NEW YORK (TheStreet) -- Shares of Netflix (NFLX) - Get Report were rising in mid-morning trading on Monday after the video streaming company said it intends to offer $800 million in senior notes to qualified institutional buyers.
Netflix plans to use proceeds from the sale to fund general corporate operations. This could include content acquisitions, investments, capital expenditures, working capital and strategic deals, according to a company statement.
The terms of the notes such as maturity dates, interest rates and redemption provisions will be determined between Los Gatos, CA-based Netflix and the initial buyers.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and weak operating cash flow.
You can view the full analysis from the report here: NFLX