Amazon Issues First Bonds Since 2000

by Nate Wooley | November 27, 2012 12:55 pm

Amazon Amazon Issues First Bonds Since 2000[1]The world’s largest online retailer, Amazon (NASDAQ:AMZN[2]), has sold corporate bonds for the first time in more than 10 years.

The bonds, which are for “general corporate purposes,” have rates ranging from 0.65% for a three-year note to 2.5% on 10-year issues. Overall, the e-commerce giant raised $3 billion through the bonds, reports International Business Times[3].

Analysts are speculating that the bonds may help finance acquisitions. While Amazon has more than $5 billion in cash on hand, the extra money may be handy for making deals. Rumors have swirled that the firm is interested in BlackBerry maker Research In Motion (NASDAQ:RIMM[4]) or chipmaker Texas Instruments (NASDAQ:TXN[5]).

The bonds were sold via investment bankers Goldman Sachs (NYSE:GS[6]) and Morgan Stanley (NYSE:MS[7]). Moody’s has rated the bonds Baa1, citing Amazon’s recent operating losses.

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