Published on 4/11/2022 in the Prospect News Investment Grade Daily.
New Issue: Amazon.com sells $12.75 billion of notes in seven parts due 2024-2062
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, April 11 – Amazon.com, Inc. priced an $12.75 billion offering of notes (A1/AA/AA-) that came in seven parts on Monday, according to an FWP filing with the Securities and Exchange Commission and additional details from a market source.
Total order books were more than $23 billion.
The company sold:
• $1.5 billion of 2.73% two-year notes at par with a spread of 22 basis points over Treasuries. Price talk was the in the Treasuries plus 45 bps area;
• $1.5 billion of 3% three-year notes at 99.841 to yield 3.056%, or Treasuries plus 32 bps, versus spread talk in the 55 bps area;
• $2 billion of 3.3% five-year notes at 99.794 to yield 3.345%, or 55 bps over Treasuries, versus spread talk in the 75 bps area;
• $1.5 billion of 3.45% seven-year notes at 99.784 to yield 3.485%, or a spread of 65 bps over Treasuries. Price talk was in the Treasuries plus 90 bps area;
• $2.5 billion of 3.6% 10-year notes at 99.817 to yield 3.622% and a Treasuries plus 85 bps spread versus talk in the 110 bps area;
• $2.5 billion of 3.95% 30-year notes at 99.7582 to yield 3.974%, or 115 bps over Treasuries, versus spread talk in the 140 bps area; and
• $1.25 billion of 4.1% 40-year notes at 99.532 to yield 4.124% and a Treasuries plus 130 bps spread. Price talk was in the Treasuries plus 155 bps area.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., SG Americas Securities, LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Amazon.com is an online commerce company based in Seattle.
| Issuer: | Amazon.com, Inc.
|
| Amount: | $12.75 billion
|
| Issue: | Notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., SG Americas Securities, LLC and Wells Fargo Securities LLC
|
| Co-managers: | Academy Securities, Inc., Drexel Hamilton, LLC, R. Seelaus & Co., LLC, Siebert Williams Shank & Co., LLC, Loop Capital Markets LLC, Samuel A. Ramirez & Co., Inc., AmeriVet Securities and Cabrera Capital Markets LLC
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Gibson, Dunn & Crutcher LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | April 11
|
| Settlement date: | April 13
|
| Ratings: | Moody’s: A1
|
| S&P: AA
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| Fitch: AA-
|
| Distribution: | SEC registered
|
|
|
| 2024 notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 13, 2024
|
| Coupon: | 2.73%
|
| Price: | Par
|
| Yield: | 2.73%
|
| Spread: | Treasuries plus 22 bps
|
| Call feature: | Make-whole call at Treasuries plus 5 bps
|
| Price talk: | Treasuries plus 45 bps area
|
| Cusip: | 023135CD6
|
|
|
| 2025 notes
|
| Amount: | $1.5 billion
|
| Maturity: | April 13, 2025
|
| Coupon: | 3%
|
| Price: | 99.841
|
| Yield: | 3.056%
|
| Spread: | Treasuries plus 32 bps
|
| Call feature: | Make-whole call at Treasuries plus 5 bps
|
| Price talk: | Treasuries plus 55 bps area
|
| Cusip: | 023135CE4
|
|
|
| 2027 notes
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| Amount: | $2 billion
|
| Maturity: | April 13, 2027
|
| Coupon: | 3.3%
|
| Price: | 99.794
|
| Yield: | 3.345%
|
| Spread: | Treasuries plus 55 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps until March 13, 2027, then a par call
|
| Price talk: | Treasuries plus 75 bps area
|
| Cusip: | 023135CF1
|
|
|
| 2029 notes
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| Amount: | $1.5 billion
|
| Maturity: | April 13, 2029
|
| Coupon: | 3.45%
|
| Price: | 99.784
|
| Yield: | 3.485%
|
| Spread: | Treasuries plus 65 bps
|
| Call feature: | Make-whole call at Treasuries plus 12.5 bps until Feb. 13, 2029, then a par call
|
| Price talk: | Treasuries plus 90 bps area
|
| Cusip: | 023135CG9
|
|
|
| 2032 notes
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| Amount: | $2.5 billion
|
| Maturity: | April 13, 2032
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| Coupon: | 3.6%
|
| Price: | 99.817
|
| Yield: | 3.622%
|
| Spread: | Treasuries plus 85 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Jan. 13, 2032, then a par call
|
| Price talk: | Treasuries plus 110 bps area
|
| Cusip: | 023135CH7
|
|
|
| 2052 notes
|
| Amount: | $2.5 billion
|
| Maturity: | April 13, 2052
|
| Coupon: | 3.95%
|
| Price: | 99.7582
|
| Yield: | 3.974%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Oct. 13, 2051, then a par call
|
| Price talk: | Treasuries plus 140 bps area
|
| Cusip: | 023135CJ3
|
|
|
| 2062 notes
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| Amount: | $1.25 billion
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| Maturity: | April 13, 2062
|
| Coupon: | 4.1%
|
| Price: | 99.532
|
| Yield: | 4.124%
|
| Spread: | Treasuries plus 130 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Oct. 13, 2061, then a par call
|
| Price talk: | Treasuries plus 155 bps area
|
| Cusip: | 023135CK0
|
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