Amazon Raises $3 Billion from Bond Offering
Amazon.com Inc. (AMZN), the world’s largest online retailer, issued $3 billion of debt to help finance the purchase of its Seattle headquarters in its first bond offering for more than a decade.
Amazon, which had no bonds outstanding, sold $750 million of 0.65 percent three-year notes that yield 38 basis points more than similar-maturity Treasuries, $1 billion of 1.2 percent five-year debt with a 63 basis-point spread and $1.25 billion of 2.5 percent securities maturing in 10 years that yield 93 basis points more than benchmarks, according to data compiled by Bloomberg. A basis point is 0.01 percentage point.
Proceeds will be used for general corporate purposes including the $1.16 billion real-estate transaction, according to Moody’s Investors Service, which rated the bonds Baa1. Standard & Poor’s rated the debt four levels higher at AA-.
Source: Bloomberg. Read full article. (link)
Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time.
-
I like shopping on Amazon, it is really good.