CASH CALL: Netflix raised $400 million by selling 2.86 million shares of common and issuing debt to one of its major investors.
THE TERMS: Mutual funds and other accounts managed by T. Rowe Price Associates Inc. bought the shares at $70 apiece. That was a 6 percent discount from Netflix’s closing stock price Monday. The remaining $200 million came from Technology Crossover Ventures, which got notes that can be converted into stock.
THE CHALLENGE: Netflix Inc. is still trying to recover from a customer backlash triggered by U.S. price increases of as much as 60 percent.