Overview
- Amazon is marketing its first U.S.-dollar bonds in about three years, with Goldman Sachs, JPMorgan, and Morgan Stanley leading the sale.
- The deal is a multi-tranche offering that could span six parts, with initial talk on a 40-year tranche near 1.15 percentage points over Treasuries.
- Proceeds are reported to be earmarked for potential acquisitions, capital spending, and share buybacks, according to people familiar with the plans.
- The move follows hefty tech issuance including Alphabet’s $25 billion, Meta’s $30 billion, and Oracle’s $18 billion deals, with JPMorgan projecting a record $1.81 trillion in U.S. high-grade supply next year tied to AI investment.
- Amazon’s AI infrastructure outlays are accelerating, with Q3 capital expenditures up 61% to $34.2 billion, data center power doubled since 2022, and a reported $38 billion, seven-year AWS deal to provide OpenAI access to Nvidia GPUs.