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)