Summary
Amazon.com, Inc. (AMZN) has announced the entry into a $17.5 billion senior unsecured delayed draw term loan credit facility (DDTL Facility) on June 8, 2026. This facility, arranged with Citibank N.A. as the administrative agent and other lenders, provides significant financial flexibility for the company's general corporate purposes. The DDTL Facility allows Amazon to draw funds up until September 30, 2026, with borrowed amounts maturing three years from the respective borrowing date. Notably, the facility does not include financial covenants, offering the company considerable operational freedom. The agreement also allows for optional prepayments without penalty, providing flexibility in managing its debt obligations.
Key Highlights
- 1Entry into a $17.5 billion senior unsecured delayed draw term loan credit facility (DDTL Facility).
- 2The DDTL Facility is available until September 30, 2026, with a three-year maturity for borrowed amounts.
- 3Proceeds from the facility are designated for general corporate purposes.
- 4The agreement features no financial covenants, enhancing operational flexibility.
- 5Amazon has the option to prepay amounts borrowed under the facility without premium or penalty, other than customary breakage costs.
- 6Interest rates will be based on either an Alternate Base Rate plus a 0% margin or a Term SOFR Rate plus a margin ranging from 0.625% to 0.875%, depending on credit ratings.