YCD news — On January 3, Amazon said that it has reached an agreement with a number of lenders that will provide Amazon with $8 billion in unsecured loans.
The loan was arranged by TD Securities (USA) LLC and will mature in 364 days (January 3, 2024), with an option to extend for a further 364 days. Amazon will use the funds for general corporate purposes. Notably, the current 0.75% spread on this loan would increase to 1.05% if Amazon decided to exercise its option to extend the term of the loan for an additional 364 days.
“Given the unpredictable macroeconomic environment, over the past several months we have employed a variety of financing methods to fund capital expenditures, debt repayments, acquisitions and working capital needs,” an Amazon spokesperson said in a statement.
The e-commerce giant has been bracing for an expected slowdown in growth as businesses and individuals cut spending due to rising inflation, the report said. Combined with a strong U.S. dollar, Amazon’s stock price will fall by about 50% in 2022.
The company also said it would continue layoffs through early 2023, but did not disclose the number of layoffs. In November last year, it was reported that the company may lay off about 10,000 people.
At the end of the third quarter ended Sept. 30, Amazon had about $3.5 billion in cash and cash equivalents and nearly $59 billion in long-term debt, YCD has learned.