Amazon announced on Tuesday that it had reached an agreement with certain lenders to provide a USD 8 billion unsecured loan to the e-commerce giant.
The term loan will mature in 364 days, with an option to extend for another 364 days, with the proceeds going toward general corporate purposes.
According to a media report, an Amazon spokesperson stated that, given the uncertain macroeconomic environment, the company has used various financing options in recent months to support capital expenditures, debt repayments, acquisitions and working capital needs.
The online retailer is bracing for slower growth as rising inflation forces businesses and consumers to cut back on spending. This, combined with a strong dollar, drove Amazon’s stock down by about 50 per cent in 2022.
It had also hinted at workforce reductions in early 2023, but had not specified how many. In November, a source told Reuters that the company planned to cut 10,000 jobs.
At the end of the third quarter, Amazon had approximately USD 35 billion in cash and cash equivalents and approximately USD 59 billion in long-term debt.
According to Amazon, Toronto Dominion served as the administrative agent for the loan agreement, which included DBS Bank and Mizuho Bank as lenders.