By Cristal Cody
Tupelo, Miss., June 1 – Amazon.com, Inc. priced $10 billion of senior notes (A2/AA-/A+) in six tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $1 billion of 0.4% three-year notes at 99.86 to yield 0.447%, or a spread of Treasuries plus 25 basis points.
Initial price talk was in the 40 bps spread area.
A $1.25 billion offering of 0.8% five-year notes priced at a Treasuries plus 50 bps spread versus talk in the 65 bps area. The notes were sold at 99.961 to yield 0.808%.
Amazon.com sold $1.25 billion of 1.2% seven-year notes at 99.967 to yield 1.205% and with a 70 bps over Treasuries spread.
The notes were initially talked to print in the 85 bps over Treasuries area.
A $2 billion tranche of 1.5% 10-year notes was sold at 99.889 to yield 1.512%, or a Treasuries plus 85 bps spread.
Initial talk was in the Treasuries plus 105 bps area.
A $2.5 billion tranche of 2.5% 30-year notes was sold with a 110 bps over Treasuries spread, or at 98.977 to yield 2.549%.
The notes were talked to print at the 130 bps spread area.
In the final tranche, $2 billion of 2.7% 40-year notes priced at 98.816 to yield 2.749%, or a Treasuries plus 130 bps spread, compared to talk in the 150 bps area.
Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The online commerce company and owner of Whole Foods Market Inc. is based in Seattle.
| Issuer: | Amazon.com, Inc.
|
| Amount: | $10 billion
|
| Description: | Notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, SG Americas Securities, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Academy Securities, Inc., Loop Capital Markets LLC and R. Seelaus & Co., LLC
|
| Trade date: | June 1
|
| Settlement date: | June 3
|
| Ratings: | Moody’s: A2
|
| S&P: AA-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 3, 2023
|
| Coupon: | 0.4%
|
| Price: | 99.86
|
| Yield: | 0.447%
|
| Spread: | Treasuries plus 25 bps
|
| Call feature: | Make-whole call at greater of par and Treasuries plus 5 bps
|
| Price guidance: | Treasuries plus 40 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 3, 2025
|
| Coupon: | 0.8%
|
| Price: | 99.961
|
| Yield: | 0.808%
|
| Spread: | Treasuries plus 50 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 10 bps before May 3, 2025; thereafter at par
|
| Price guidance: | Treasuries plus 65 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 3, 2027
|
| Coupon: | 1.2%
|
| Price: | 99.967
|
| Yield: | 1.205%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 15 bps before April 3, 2027; thereafter at par
|
| Price guidance: | Treasuries plus 85 bps area
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | June 3, 2030
|
| Coupon: | 1.5%
|
| Price: | 99.889
|
| Yield: | 1.512%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 15 bps before March 3, 2030; thereafter at par
|
| Price guidance: | Treasuries plus 105 bps area
|
|
|
| 30-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | June 3, 2050
|
| Coupon: | 2.5%
|
| Price: | 98.977
|
| Yield: | 2.549%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 20 bps before Dec. 3, 2049; thereafter at par
|
| Price guidance: | Treasuries plus 130 bps area
|
|
|
| 40-year notes
|
| Amount: | $2 billion
|
| Maturity: | June 3, 2060
|
| Coupon: | 2.7%
|
| Price: | 98.816
|
| Yield: | 2.749%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 20 bps before Dec. 3, 2059; thereafter at par
|
| Price guidance: | Treasuries plus 150 bps area
|
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