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Amazon's (AMZN -0.5%) first debt offering since 1999 will reportedly include bonds with...

Amazon's (AMZN -0.5%) first debt offering since 1999 will reportedly include bonds with maturities ranging out three, five, and ten years. The company - which doesn't have any outstanding bonds at the moment - will only say at this point that the funds will be used for general corporate purposes.
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Comments (8)
  • Matt Blecker, CFA
    , contributor
    Comments (172) | Send Message
    Running out of cash?


    Total cash down from $9.58 billion as of 12/31/11 to $5.25 billion as of 9/30/12.


    Year-over-year looks bad as well:


    Cash down over $1 billion on 9/30/12 compared to 9/30/11 and current liabilties up to $12.61 billion on 9/30/12 compared to $8.98 billion on 9/30/11.


    But the company will be profitable and margins will improve after they are done expanding rapidly. Yup.........whatever dude. When will that be? 2020? 2050? 2100?
    26 Nov 2012, 10:16 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1790) | Send Message
    Matt, valid point, but it's a great time to issue debt with the low interest rate environment we have now.
    26 Nov 2012, 10:19 AM Reply Like
  • Joe Eifrid
    , contributor
    Comments (345) | Send Message
    Hmm...I guess when you can't make money with $57 bil in annual revenues you have to take on debt so you can expand, so you can make up those losses on every sale with volume.
    26 Nov 2012, 10:35 AM Reply Like
  • Joe Springer
    , contributor
    Comments (2388) | Send Message
    Wow. Somewhere in Portugal a keyboard is getting a good rogering.
    26 Nov 2012, 11:59 AM Reply Like
  • Akimbe
    , contributor
    Comments (60) | Send Message
    Who will blink. Can AMZN wipe out all competition before the spigot of cash (stock/debt issuance) runs out?
    26 Nov 2012, 01:06 PM Reply Like
  • coastrebel
    , contributor
    Comments (3) | Send Message
    The latest rating I can find for Amazon's debt is from 2009 when S&P rated them investment grade.


    How safe would purchasing these bonds be?
    26 Nov 2012, 02:14 PM Reply Like
  • krk
    , contributor
    Comments (845) | Send Message
    Got a decent AA- rating by S&P on this debt offering.
    That means, first two years interest expense on this $2.5BB debt would be about $45 million/year?
    Net earnings past 4 quarters: $40 million.
    26 Nov 2012, 02:20 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1790) | Send Message
    Interesting point...hmm.
    28 Nov 2012, 08:33 AM Reply Like
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