The DVD rental and video streaming company is selling the notes to Technology Crossover Ventures. They can be converted into equity when they mature in late 2018, which could require Netflix to issue 2.33M shares. That translates into $85.81 a share, just 15% more than the closing price on Monday — and a far cry from the nearly $300 that the stock fetched as recently as mid-July. The deal also gives TCV the right to name one board member; it chose Jay Hoag, a TCV founding general partner who’s already a Netflix director.

The news didn’t sit well with investors: Netflix, which was down 4.6% during the trading day, fell an additional 2% in initial post market activity. A prospectus that Netflix issued in conjunction with the deal with TCV noted that it could require the video company “to dedicate a portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of cash flow to fund working capital, capital expenditures, acquisitions and investments and other general corporate purposes.” It also noted that the company lost more subscribers than it expected after July when it announced a 60% price increase for those who want to continue to rent DVDs and stream videos. The setback along with the growing payments for content “will likely continue to have an adverse impact on our results of operations. If we are unable to repair the damage to our brand and reverse negative subscriber growth within our domestic segment, our results of operations, including cash flow, will be adversely affected.”