Amazon Floats First Bond Issue Since 1998

Amazon (Nasdaq: AMZN  ) has floated a $3 billion bond issue, according to filings the company submitted to the SEC. The proceeds are to be used for "general corporate purposes," about which Amazon did not elaborate in the SEC filings. 

The bonds have three-, five-, and 10-year maturities with yields of 0.742%, 1.301%, and 2.601%, respectively. The company is seeking total proceeds of $750 million from the three-year bonds, $1 billion from the five-year issue, and $1.25 billion for the 2022 notes.

Amazon's move is its first foray into bond financing since 1998, according to The Wall Street Journal, when Amazon's debt was rated as "junk" and it was forced to offer bonds at a relative discount. Since interest rates have been extremely low in recent times, established Internet companies that previously shunned bonds, such as Google (Nasdaq: GOOG  ) , have turned to the debt markets to expand their cash positions.

At the end of September, Amazon had $2.98 billion in cash.

link


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2128914, ~/Articles/ArticleHandler.aspx, 9/21/2014 2:31:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement