Amazon Prices £4.25 Billion Sterling Bonds Amid Capital-Intensive AI Buildout
Amazon has successfully priced £4.25 billion sterling bonds in four parts, generating an annual cash interest of £249.5 million before fees and currency effects. The bonds come with maturities ranging from 2029 to 2045, with the delivery expected on September 14. At a £1=$1.353 exchange rate recorded near Friday's U.S. close, the principal was worth approximately $5.75 billion, while the annual coupons were around $337.6 million.
The bonds are divided into four tranches: one short-term and three long-term issues. The face amounts and corresponding coupon rates for each tranche are as follows:
Sept. 14, 2029: £1.25 billion at 5.200% (£65.0 million annual interest)
Sept. 14, 2032: £1.00 billion at 5.550% (£55.5 million annual interest)
Sept. 14, 2038: £1.00 billion at 6.250% (£62.5 million annual interest)
Sept. 14, 2045: £1.00 billion at 6.650% (£66.5 million annual interest)
Total: £4.25 billion at 5.871% weighted (£249.5 million annual interest)
The notes are senior unsecured obligations that rank equally with Amazon's other senior unsecured debt, with no sinking fund. Interest is due twice yearly, on March 14 and September 14, starting from March 2027.