Tuesday morning, Netflix (NASDAQ:NFLX) announced that it will take on $400 million of senior debt and that the cash infusion will be used to retire $200 million of existing debt with an 8.5% annual interest rate.

Just after Tuesday's closing bell, Netflix took the next step and announced the pricing of the new debt. The notes due in 2021 will actually add up to $500 million with a 5.375% interest coupon.

After closing this round of financing and debt retirement, Netflix will have approximately $700 million of long-term debt on its balance sheet. The net of these transactions will double the company's cash on hand to roughly $600 million, not counting another $460 million parked in short-term investments.

Fool contributor Anders Bylund owns shares of Netflix, but he holds no other position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+.

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