Amazon Secures $17.5 Billion Loan Facility Led by Citigroup

On June 11, Amazon disclosed in regulatory filings that it has signed a loan agreement totaling $17.5 billion with a syndicate led by Citigroup. According to the regulatory documents submitted on Wednesday, the lenders have agreed to provide this delayed draw term loan (DDTL), which will remain available until the end of September this year. Amazon is required to repay any borrowed amounts within three years from the date of borrowing. The interest rate on the loan will be based on the secured overnight financing rate (SOFR), plus an additional 0.625 to 0.875 percentage points, depending on Amazon's credit rating. Other banks participating in this transaction include JPMorgan Chase, Bank of America, HSBC, and Wells Fargo, along with a dozen other banks involved in the financing.