By Aleesia Forni
Virginia Beach, Dec. 2 – Amazon.com, Inc. sold $6 billion of senior notes (Baa1/AA-/) in five maturities on Tuesday, according to an informed source.
The company priced $1 billion of 2.6% five-year notes at 105 basis points over Treasuries. Pricing was at 99.8 to yield 2.643%.
A second tranche was $1 billion of 3.3% seven-year notes priced at 99.628 to yield 3.36%, or 135 bps over Treasuries.
There was also $1.25 billion of 3.8% 10-year notes sold at 99.638 to yield 3.844%, or Treasuries plus 155 bps.
A $1.25 billion tranche of 4.8% 20-year bonds sold at 185 bps over Treasuries. Pricing was at 99.175 to yield 4.865%.
Finally, $1.5 billion of 4.95% 30-year bonds sold at 99.236 to yield 5.065%, or Treasuries plus 205 bps.
All tranches sold in line with price talk, which was unchanged from initial guidance.
Bookrunners were Morgan Stanley & Co. LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.
Proceeds will be used for general corporate purposes.
The online retailer is based in Seattle.
| Issuer: | Amazon.com Inc.
|
| Issue: | Senior notes
|
| Amount: | $6 billion
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc.
|
| Trade date: | Dec. 2
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: AA-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 5, 2019
|
| Coupon: | 2.6%
|
| Price: | 99.8
|
| Yield: | 2.643%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | 105 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 5, 2021
|
| Coupon: | 3.3%
|
| Price: | 99.628
|
| Yield: | 3.36%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | 135 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 5, 2024
|
| Coupon: | 3.8%
|
| Price: | 99.638
|
| Yield: | 3.844%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | 155 bps area
|
|
|
| 20-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 5, 2034
|
| Coupon: | 4.8%
|
| Price: | 99.175
|
| Yield: | 4.865%
|
| Spread: | Treasuries plus 185 bps
|
| Price talk: | 185 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.5 billion
|
| Maturity: | Dec. 5, 2044
|
| Coupon: | 4.95%
|
| Price: | 99.236
|
| Yield: | 5.065%
|
| Spread: | Treasuries plus 205 bps
|
| Price talk: | 205 bps area
|
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