Amazon closes $15 billion multi-tranche bond offering

Amazon.com, Inc. (NASDAQ:AMZN) announced Thursday that it has completed the sale of $14.961 billion in aggregate principal amount of senior unsecured notes in a multi-tranche offering. The transaction, disclosed in a press release statement and detailed in a filing with the Securities and Exchange Commission, closed on Thursday.

The offering included six tranches: $2.5 billion of 3.900% notes due 2028, $2.5 billion of 4.100% notes due 2030, $1.5 billion of 4.350% notes due 2033, $3.5 billion of 4.650% notes due 2035, $3 billion of 5.450% notes due 2055, and $2 billion of 5.550% notes due 2065. The notes were sold under an underwriting agreement dated Monday with Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC acting as managers for the underwriters.

The net proceeds to Amazon from the offering are approximately $14.926 billion, after deducting underwriting discounts but before offering expenses. The notes were issued under Amazon’s existing shelf registration statement on Form S-3, originally filed with the SEC on February 3, 2023.

The notes are unsecured obligations of Amazon and were issued pursuant to an indenture dated November 29, 2012, as amended and supplemented. Wells Fargo Bank, National Association, served as the prior trustee, with Computershare Trust Company, National Association, acting as successor trustee.

Amazon’s common stock is listed on the Nasdaq Global Select Market under the symbol AMZN.

All information in this article is based on a press release statement and the company’s filing with the Securities and Exchange Commission.

In other recent news, Amazon Web Services (AWS) and HUMAIN announced plans to deploy up to 150,000 AI accelerators in a new data center facility in Riyadh, Saudi Arabia. This initiative is part of a broader collaboration that includes a $5 billion investment in AI infrastructure, services, and talent development in the region. Additionally, Amazon is among the five major technology hyperscalers that have collectively issued a record $121 billion in investment-grade debt this year, as reported by Bank of America. Meanwhile, Amazon’s self-driving unit, Zoox, has opened a waitlist for free robotaxi rides in San Francisco, inviting participants to provide feedback through its "Zoox Explorers" program. In analyst activity, Needham has reiterated its Buy rating on Amazon stock, maintaining a price target of $265, citing the company’s use of generative AI to introduce new products. Furthermore, the European Commission has initiated investigations into Amazon Web Services under the Digital Markets Act to evaluate their role as potential gatekeepers in the cloud computing sector. These developments underscore Amazon’s active engagement in expanding its technological and service capabilities.

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