Summary
Amazon.com, Inc. (AMZN) has announced the entry into a material definitive agreement with Toronto Dominion (Texas) LLC, as administrative agent, and other lenders for an unsecured $8.0 billion term loan facility. This facility is set to mature in 364 days, with an option to extend for an additional 364 days. The initial interest rate is based on the Secured Overnight Financing Rate (SOFR) plus a spread of 0.75%, which would increase to 1.05% if the extension option is exercised.
Key Highlights
- 1Amazon secured an $8.0 billion unsecured term loan facility on January 3, 2023.
- 2The loan has an initial maturity of 364 days with an option to extend for another 364 days.
- 3The initial interest rate is SOFR + 0.75%, increasing to SOFR + 1.05% if extended.
- 4Proceeds from the term loan are designated for general corporate purposes.
- 5The agreement does not include any financial covenants, which is a positive indicator of financial flexibility.
- 6The loan is unsecured, meaning it is not backed by specific company assets.