entered into a $8 billion unsecured loan with several lenders, the e-commerce giant said in a U.S. Securities and Exchange Commission filing Tuesday.
The Seattle-based online retailer said the funds of the unsecured term loan are set to be used toward general corporate purposes, without providing any further detail.
The loan, arranged by TD Securities (USA) LLC, will mature Jan. 3, 2024, but can be further extended by another 364 days, the company said.
If Amazon.com decides to exercise its option to extend the loan’s maturity for an additional 364 days, the loan’s current interest rate spread of 0.75% will increase to 1.05%, it said.
For the first nine months of 2022, the company paid $932 million in cash paid of interest on debt, up from $731 million for the same period a year earlier.
The joint bookrunners of the unsecured loan are TD Securities (USA) LLC, Australia and New Zealand Banking Group Ltd., Banco Bilbao Vizcaya Argentaria S.A. New York’s branch, Bank of China’s Los Angeles branch, Credit Agricole Corporate and Investment Bank, DBS Bank Ltd., Mizuho Bank Ltd. and National Westminster Bank Plc, according to the SEC filing.
The company’s long-term debt status is $58.9 billion as of Sept. 30, according to its latest quarterly report.
Amazon will add billions of dollars to its debt pool after a year in which the Federal Reserve raised rates at the fastest pace since the early 1980s to combat inflation.