Online movie rental company Netflix announced the pricing of equity and convertible notes financings totaling USD 400 million. The company said that USD 200 million was raised through the sale of shares to certain funds and accounts managed by T. Rowe Price Associates. Netflix agreed to sell around 2.86 million shares at USD 70.00 per share, for a total of USD 200 million gross proceeds. The offering will close on or about 28 November, subject to customary closing conditions. Another USD 200 million was raised through the private placement of convertible notes to funds affiliated with Technology Crossover Ventures (TCV), with the initial conversion price at about USD 85.80 per share. The offering will also close on or about 28 November, subject to certain closing conditions. Netflix said the transactions have strengthened its balance sheet and that it will remain focused on growing streaming subscriptions and returning to global profitability after its 2012 UK launch. The company estimates total net proceeds at USD 397 million, after deducting offering expenses.
