Amazon lines up $8B unsecured loan to support growth
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Amazon (NASDAQ:AMZN) confirmed in a SEC filing late on Tuesday that the e-commerce giant had reached an agreement with certain lenders to provide it with an $8B unsecured loan to be used for general corporate purposes.
The company's term loan will mature in 364 days, with an option to extend it for another 364 days. The initial interest rate applicable to the term loan is the secured overnight financing rate plus 0.75%. If the company exercises its option to extend the loans maturity for an additional 364 days, the interest rate spread will increase from 0.75% to 1.05%.
"Given the uncertain macroeconomic environment, over the last few months we have used different financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs," reads a statement from an Amazon spokesperson.
Amazon (AMZN) reported holding about $35B in cash at the end of Q3 and having long-term debt of about $59B.
Shares of Amazon (AMZN) moved up 1.15% in premarket trading on Wednesday to $86.78.
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