Company taps debt markets with eight-part bond sale
Amazon.com Inc. (NASDAQ:AMZN) has launched an eight-part US investment-grade bond offering, seeking to raise at least US$25 billion through securities with maturities ranging from three to 40 years.
The offering includes several tranches scheduled to mature on 9 July in their respective maturity years, including a three-year floating-rate note linked to the Secured Overnight Financing Rate (SOFR).
Wide range of maturities offered
Among the fixed-rate securities, Amazon is marketing a three-year note at an initial spread of 65 basis points above US Treasuries, a five-year bond at 80 basis points and a seven-year issue at 90 basis points.
The company’s 10-year notes are being marketed at an initial spread of 100 basis points over comparable Treasury securities.
For investors seeking longer maturities, Amazon has indicated initial pricing of 120 basis points for its 20-year bonds, 130 basis points for the 30-year tranche and 145 basis points for the 40-year offering.
Pricing expected later on Tuesday
Bloomberg News was first to report both the expected size of the financing and the preliminary pricing guidance.
The bonds are expected to be priced later on Tuesday.
Amazon currently holds strong investment-grade credit ratings, including A1 from Moody’s, AA from S&P Global Ratings and AA- from Fitch Ratings.