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US: Amazon to fund part of Whole Foods buy with debt offering

By  |  August 16, 2017

Amazon.com announced Tuesday, August 15, the launch of a private debt offering.

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    In a press release, the company said it is offering to sell senior unsecured notes in a private offering, with net proceeds going to fund some or all of its multibillion-dollar acquisition of Whole Foods Market. Proceeds will also go for general corporate purposes, the eCommerce giant said.

    Amazon later announced that it would price the offering of US$16.0 billion, as predicted by analysts by CNBC. Moody’s earlier in the week assigned a Baa1 rating to what it said according to CNBC is a proposed offering of up to US$16 billion in senior unsecured notes.

    “The change in outlook to positive reflects our view that despite the increase in debt, the Whole Foods acquisition is an immediate credit positive for the company on a variety of fronts,” Moody’s Vice President Charlie O’Shea said in a statement, according to CNBC. Analysts told CNBC the offering will be broken down into seven parts, with three-year to 40-year maturities.

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