Netflix, Inc. Announces Pricing of $400 Million Concurrent Common Stock and Convertible Notes Financing

Netflix, Inc. announced the pricing of concurrent common equity and convertible notes financings totaling $400 million. $200 million was raised through the registered sale of common stock to certain mutual funds and accounts managed by T. Rowe Price Associates, Inc., and $200 million was raised through the private placement of convertible notes to funds affiliated with Technology Crossover Ventures (TCV). registration statement at a public offering price of $70.00 per share, for a total of $200 million gross proceeds. The offering is scheduled to close on or about November 28, 2011. Concurrently, TCV has agreed to purchase $200 million aggregate principal amount of Zero Coupon Convertible Senior Notes due 2018 (the Notes) in a private placement. The Notes will be convertible into shares of Netflix common stock at an initial conversion rate of 11.6553 shares of common stock per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of approximately $85.80 per share of common stock. Netflix estimates that the net proceeds from the concurrent offerings will be approximately $397 million, after deducting offering expenses. Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the common stock offering, and Morgan Stanley & Co. LLC is acting as the advisor to the Company in connection with the convertible notes financing.