By Andrea Heisinger
New York, Nov. 26 - Amazon.com, Inc. on Monday sold $3 billion of notes (Baa1/AA-/) in three maturities, a market source said.
It is the company's first recent bond sale outside of the convertible market, the source said. The company had priced bonds more than a decade ago.
A $750 million tranche of 0.65% three-year notes priced at 99.728 to yield 0.742% with a spread of Treasuries plus 38 basis points. The notes were sold much tighter than initial guidance in the 50 bps area.
There is a make-whole call at 5 bps over Treasuries.
There was $1 billion of 1.2% five-year notes sold at 99.513 to yield 1.301% with a spread of 63 bps over Treasuries. The notes were also priced much lower than initial talk in the 75 bps area.
The tranche features a make-whole call at 10 bps over Treasuries.
Finally, a $1.25 billion tranche of 2.5% 10-year notes priced at 99.116 to yield 2.601% with a spread of Treasuries plus 93 bps. The tranche priced tighter than initial talk in the 105 bps area.
The 10-year notes have a make-whole call at 15 bps over Treasuries until Aug. 29, 2022, with a par call after that date.
Bookrunners were Morgan Stanley & Co. LLC and Goldman Sachs & Co.
Proceeds will be used for general corporate purposes.
The online retailer is based in Seattle.
| Issuer: | Amazon.com, Inc.
|
| Issue: | Notes
|
| Amount: | $3 billion
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Trade date: | Nov. 26
|
| Settlement date: | Nov. 29
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: AA-
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 27, 2015
|
| Coupon: | 0.65%
|
| Price: | 99.728
|
| Yield: | 0.742%
|
| Spread: | Treasuries plus 38 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 50 bps area (initial)
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 29, 2017
|
| Coupon: | 1.2%
|
| Price: | 99.513
|
| Yield: | 1.301%
|
| Spread: | Treasuries plus 63 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 75 bps area (initial)
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 29, 2022
|
| Coupon: | 2.5%
|
| Price: | 99.116
|
| Yield: | 2.601%
|
| Spread: | Treasuries plus 93 bps
|
| Call: | Make-whole at Treasuries plus 15 bps to Aug. 29, 2022, par call after
|
| Price talk: | 105 bps area (initial)
|
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