Amazon to issue at least $8 billion in bonds across five maturities: WSJ
Amazon.com Inc. is preparing to issue at least $8 billion in bonds across five maturities to take advantage of an improvement in borrowing conditions for U.S. borrowers, the Wall Street Journal reported. The proceeds are earmarked for general corporate purposes. The deal is the second this year after the online and cloud services giant issued $12.75 billion of bonds in April. That deal came just weeks after the company closed on its purchase of the MGM movie and television studio after agreeing to pay about $8.5 billion in cash for the nearly century-old company behind the "Rocky" and James Bond franchises. Fitch Ratings assigned the new notes an AA-minus rating on Tuesday, to reflect the company's leading positions in global e-commerce and cloud computing, close customer connections, significant scale with more than $60 billion in 2021 EBITDA, good free cash flow generation and "reasonable adjusted leverage expected to trend near 2.0x." Amazon stock was slightly higher premarket, but has fallen 45% in the year to date, while the S&P 500 has fallen 17%.
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