Amazon Taps Bond Market for First Time in 15 Years
Amazon.com went beyond its usual Cyber Monday deals with a different type of offering: debt.
The Seattle-based Web giant on Monday tapped capital markets with its first bond offering in nearly 15 years, raising $3 billion for what it said were “general corporate purposes.” Among other things, the company is set to complete the purchase of a headquarters complex for $1.16 billion by year-end.
The bond offering was Amazon’s first since May 1998, when the company was “junk” rated and offered debt at discounted rates. Amazon appears to be taking advantage of low interest rates to build its cash reserves, even as its Web site, Kindle and Web-services business continue to bring in more revenue.