Netflix bond spreads widened late Tuesday after earnings showed it losing customers for the first time

Spreads on high-yield bonds issued by streaming giant Netflix Inc. widened by more than 20 basis points late Tuesday, after the company’s first-quarter earnings showed it losing customers for the first time since it was in its infancy. Netflix has more than $15 billion in long-term debt, taken on over the years to fund its content acquisition and production, according to data from FactSet. The company’s most active bonds, the 4.875% notes that mature in June of 2030 saw spreads widen by 21 basis points to 176 bps over comparable Treasurys, according to bond trading platform MarketAxess. The 4.875% notes that mature in April of 2028 saw spreads widen by 26 basis points to 186 bps over Treasurys. Netflix is a crossover credit, one that is rated as high-yield by Moody’s but was upgraded to investment grade by S&P Global Ratings last October.

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