Amazon secures $8 billion term loan

On Tuesday, Amazon Inc said it had agreed with certain lenders to provide an $8 billion unguaranteed loan.

The term loan will complete in 364 days, with the choice to extend for another 364 days, and the proceeds will be used for general corporate purposes.

An Amazon spokesperson briefed Reuters, “Given the uncertain macroeconomic environment, over the last few months, we have used different financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs.”

Online retailers have been fortifying for likely slower growth as surging inflation forces businesses and consumers to reduce spending, coupled with a strong greenback, dragging Amazon’s shares about 50% lower in 2022.

It also flagged workforce reductions without specifying the number earlier this year. However, the company targeted about 10,000 job cuts; a source informed Reuters in November.

At the finish of the third quarter, Amazon had approximately $35 billion in cash and cash equivalents and about $59 billion in long-term credit.

Among the lenders were DBS Bank and Mizuho Bank, Amazon said, with Toronto Dominion as the administrative agent for the loan agreement.

- Published By Team Timeswire

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