Amazon.com has revealed in a regulatory filing that it has entered into a loan agreement for a total of $17.5 billion with a banking syndicate led by Citigroup.
According to the filing submitted on Wednesday, the lenders have agreed to provide this delayed draw term loan facility, which will remain available until the end of September this year. Each time Amazon draws on the credit line, the borrowed amount must be repaid within three years from the date of the drawdown.
The interest rate for the loan will be set at a spread of 0.625 to 0.875 percentage points above the Secured Overnight Financing Rate (SOFR), with the specific margin contingent upon Amazon's credit rating.
Other banks participating in the deal include JPMorgan Chase, Bank of America, HSBC, and Wells Fargo. Additionally, more than a dozen other banks are also involved in this financing arrangement.
The move comes as major technology giants are actively raising debt to fund significant investments in artificial intelligence infrastructure. Amazon has also recently issued bonds in overseas markets, thereby leveraging alternative funding channels.
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