Published on 11/29/2022 in the Prospect News Investment Grade Daily.
New Issue: Amazon sells $8.25 billion of notes in five tranches
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Nov. 29 – Amazon.com, Inc. priced an $8.25 billion offering of notes (A1/AA/AA-) that came in five parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission and additional details from a market source.
The company sold:
• $1.25 billion of 4.7% two-year notes at 99.933 with a spread of 25 basis points over Treasuries to yield 4.736%. Price talk was in the 45 bps area;
• $1.25 billion of 4.6% three-year notes at 99.994 to yield 4.602%, or Treasuries plus 35 bps versus talk in the 55 bps area;
• $2 billion of 4.55% five-year notes at 99.942 to yield 4.563%, or 62.5 bps over Treasuries. Price talk was in the Treasuries plus 85 bps area;
• $1.5 billion of 4.65% seven-year notes at 99.929 to yield 4.662%, or a spread of 80 bps over Treasuries, versus talk in the 100 bps area; and
• $2.25 billion of 4.7% 10-year notes at 99.976 to yield 4.703% and a Treasuries plus 95 bps spread. Price talk was in the 115 bps area.
J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., SG Americas Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.
Amazon will use the proceeds for general corporate purposes, repayment of debt, acquisitions, investments, working capital, investments in subsidiaries, capital expenditures and repurchases of outstanding shares of common stock.
Amazon.com is an online commerce company based in Seattle.
| Issuer: | Amazon.com, Inc.
|
| Amount: | $8.25 billion
|
| Issue: | Notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., SG Americas Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | BNP Paribas Securities Corp., Scotia Capital (USA) Inc., Drexel Hamilton, LLC, Loop Capital Markets LLC, R. Seelaus & Co., LLC, Siebert Williams Shank & Co., LLC, Academy Securities, Inc., Samuel A. Ramirez & Co., Inc., CastleOak Securities, LP and Tigress Financial Partners LLC
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Gibson, Dunn & Crutcher LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 1
|
| Ratings: | Moody’s: A1
|
| S&P: AA
|
| Fitch: AA-
|
| Distribution: | SEC registered
|
|
|
| 2024 notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 29, 2024
|
| Coupon: | 4.7%
|
| Price: | 99.933
|
| Yield: | 4.736%
|
| Spread: | Treasuries plus 25 bps
|
| Call feature: | Make-whole call at Treasuries plus 5 bps
|
| Price talk: | Treasuries plus 45 bps area
|
| Cusip: | 023135CM6
|
|
|
| 2025 notes
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 1, 2025
|
| Coupon: | 4.6%
|
| Price: | 99.994
|
| Yield: | 4.602%
|
| Spread: | Treasuries plus 35 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
| Price talk: | Treasuries plus 55 bps area
|
| Cusip: | 023135CN4
|
|
|
| 2027 notes
|
| Amount: | $2 billion
|
| Maturity: | Dec. 1, 2027
|
| Coupon: | 4.55%
|
| Price: | 99.942
|
| Yield: | 4.563%
|
| Spread: | Treasuries plus 62.5 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps until Nov. 1, 2027, then a par call
|
| Price talk: | Treasuries plus 85 bps area
|
| Cusip: | 023135CP9
|
|
|
| 2029 notes
|
| Amount: | $1.5 billion
|
| Maturity: | Dec. 1, 2029
|
| Coupon: | 4.65%
|
| Price: | 99.929
|
| Yield: | 4.662%
|
| Spread: | Treasuries plus 80 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Oct. 1, 2029, then a par call
|
| Price talk: | Treasuries plus 100 bps area
|
| Cusip: | 023135CQ7
|
|
|
| 2032 notes
|
| Amount: | $2.25 billion
|
| Maturity: | Dec. 1, 2032
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| Coupon: | 4.7%
|
| Price: | 99.976
|
| Yield: | 4.703%
|
| Spread: | Treasuries plus 95 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Sept. 1, 2032, then a par call
|
| Price talk: | Treasuries plus 115 bps area
|
| Cusip: | 023135CR5
|
|
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