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Netflix to offer senior notes

The streaming video service said it will offer $400 mil in senior notes to help pay for all the expensive content it has been purchasing. Netflix said it will use about $225 mil of the net proceeds to redeem its outstanding 8.5% senior notes due in '17. It will use the rest "for general corporate purposes, including capital expenditures, investments, working capital and potential acquisitions and strategic transactions." Netflix (NFLX) had streaming content obligations of $5.6 bil as of the end of '12. Of that total, $2.3 bil are coming due in less than a year. Shares rose 4.3% to 169.12.