e-commerce giant Amazon (NASDAQ: AMZN) has entered into agreements with multiple lenders, including DBS Bank and Mizuho Bank, to acquire $8 billion in unsecured loans. The maturity of the term loan is 364 days for him, but in addition he has the option to extend the term for 364 days.
An Amazon spokesperson said, “Given the uncertain macroeconomic environment, we have used a variety of financing options in the past few months to support our capital expenditures, debt repayments, acquisitions and working capital needs. I have been,” he said. Reuters in a statement.
The initial interest rate for the Term Loan will be the overnight secured loan rate plus 0.75%. If extended, the interest rate spread he will increase from 0.75% to 1.05%. Amazon clarified in his SEC filing that the proceeds from the term loan will be used for general corporate purposes. The company said he had $58.9 billion in long-term debt as of September 30, 2022. The company’s quarterly report shows that cash paid on interest on debt rose from $731 million in the same period in 2021 to $932 million in the first nine months of 2022. million dollars. .
Amazon and other tech companies faced persistent macro challenges last year. The company’s retail business was severely impacted in 2022 by slowing consumer spending due to high inflation and potential recession fears. The company’s Amazon Web Services (AWS) cloud computing business slowed, but was resilient compared to its e-commerce business in the first nine months of 2022. tough business situation.
Is Amazon Stock a good buy?
Wall Street remains bullish on Amazon stock despite ongoing economic pressure. Amazon’s Strong Purchase Consensus Rating is based on 35 purchases and 3 holds. An average AMZN stock price target of $139.74 implies a 62.8% upside potential. The stock price he fell 51% in 2022.
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