If you like your financial news shaken, not stirred, I have three words for you:
Bond. Amazon bonds.
In 1997, Pierce Brosnan was James Bond, and Amazon was considered a junk-rated bond issuer.
How things have changed.
Nowadays, Daniel Craig is James Bond and Amazon is a powerhouse in the industry, and planning to sell three-, five- and 10-year bonds in a deal that is expected to soar into the $2.5 billion range.
Image via Shutterstock
The proceeds will be for general corporate purposes, such as the purchase of Amazon’s corporate headquarters, according to Moody’s.
"Demand should be strong because it's a new name for the marketplace," Sean Simko, head of global fixed-income management at SEI Investments, told foxbusiness.com. Experts expect the bonds to yield .5, .75 and 1.05 percent over the three-, five- and 10-year Treasury rates.
But not everyone is excited about the offering. Andrew Hofer, portfolio manager at Brown Brothers Harriman in New York, is not impressed. "This Cyber Monday promotion is still too expensive, as much as we admire the company," he said.
Moody’s cited online retails sales as a strength for the company, helping boost its credit rating, but other factors are working against it, and Moody’s gave Amazon a AA-minus rating.
Aside from the corporate headquarters, the mind boggles at the thoughts of what Amazon might do with billions of dollars. Perhaps it is planning for the zombie apocalypse, or looking to ship extra Hostess goodies to Colorado and Washington State. Or maybe the company wants to promote books by independent authors. Only time will tell.
TechZone360 Web Editor
Sometimes you run into a product that redefines a segment. In cars it was things like the 240Z and Miata, in Smartphones the BlackBerry and then the i…
In early 2016, we shared our predictions of key security threats likely to hit us this year. As predicted, cyber espionage, ransomware, insider threat…
Pebble offers confirmation that it's pulling up stakes in the wearable tech race, and moving lock, devs and software to Fitbit.
SoftBank Group founder and CEO Masayoshi Son, who is also Sprint's chairman, told President-elect Donald Trump he wants to create 50,000 new U.S. jobs…
President-elect Donald J. Trump will become the 45th President of the United States of America on January 20, 2017. Many in the tech, media and teleco…