Netflix prices $200 million senior notes offering

Los Gatos, Calif. Netflix said Tuesday it will sell $200 million aggregate principal amount of its 8.55 senior notes due 2017 to qualified institutional buyers.

The offering is expected to close Friday.

The notes will be senior unsecured obligations of Netflix. Interest will be payable semiannually at a rate of 8.5% per year on May 15 and Nov. 15.

Netflix said it plans to use the proceeds to repay all outstanding amounts under and terminate its credit agreement, and for possible future stock buybacks and general corporate purchases.