8-KMaterial AgreementsFinancial EventsOther Events+1

AMAZON COM INC 8-K Report, Material Agreement (Apr 27, 2018)

Filed April 27, 2018For Securities:AMZN

Summary

Amazon.com, Inc. (AMZN) filed an 8-K on April 27, 2018, reporting key updates to its financing arrangements. The company entered into an Amended and Restated Credit Agreement, significantly increasing its unsecured revolving credit facility from $3.0 billion to $7.0 billion, with an extended maturity date of April 27, 2021. This enhanced credit facility provides greater financial flexibility for general corporate purposes. Furthermore, Amazon established a Commercial Paper Program allowing for the issuance of unsecured commercial paper notes up to an aggregate of $7.0 billion. These notes will have varying maturities not exceeding 397 days and will also be used for general corporate purposes. These actions collectively demonstrate Amazon's proactive approach to managing its liquidity and financing needs, potentially supporting ongoing operations and strategic initiatives.

Key Highlights

  • 1Increased unsecured revolving credit facility from $3.0 billion to $7.0 billion.
  • 2Extended the maturity date of the credit facility to April 27, 2021.
  • 3Established a Commercial Paper Program for unsecured note issuance up to $7.0 billion.
  • 4Proceeds from both the credit facility and commercial paper program are designated for general corporate purposes.
  • 5The new credit agreement amends and restates the prior agreement from May 20, 2016.
  • 6Commercial paper notes can have maturities up to 397 days from issuance.

Frequently Asked Questions

Amazon increased its credit facility and established a commercial paper program to enhance its financial flexibility and ensure adequate liquidity for general corporate purposes. This could include funding ongoing operations, strategic investments, or backstopping potential future debt issuances.

The company now has a $7.0 billion unsecured revolving credit facility and the ability to issue up to $7.0 billion in unsecured commercial paper notes, providing a total potential borrowing capacity of $14.0 billion through these two arrangements.

The Amended and Restated Credit Agreement has an extended maturity date of April 27, 2021. The Commercial Paper Program allows for the issuance of notes with maturities not exceeding 397 days from the date of issue, meaning individual notes will mature within roughly a year, but the program itself doesn't have a stated expiration date in this filing.

Both the increased revolving credit facility and the commercial paper program are for unsecured borrowings. This indicates Amazon's strong credit standing, allowing it to access capital without pledging specific assets as collateral.