Amazon.com, Inc. Announces Redemption of Its 3.300% Notes Due December 5, 2021

Rhea-AI Summary

Amazon.com, Inc. (NASDAQ:AMZN) announced the redemption of $1 billion of its outstanding 3.300% Notes, maturing on December 5, 2021, effective October 5, 2021. The redemption price will equal 100% of the principal amount plus any accrued interest. Following the redemption date, these Notes will cease to accrue interest and will no longer be outstanding. This move reflects Amazon's strategic financial management and capital allocation efforts.

Positive

• Redemption of $1 billion in debt may improve financial metrics and liquidity.
• This action may positively impact investor confidence in Amazon's capital management.

Negative

• None.

SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ:AMZN) today announced that on October 5, 2021 (the “Redemption Date”) it will redeem all $1,000,000,000 aggregate principal amount of its outstanding 3.300% Notes due December 5, 2021 (CUSIP No. 023135 AM8) (the “Notes”).

The Notes will be redeemed on the Redemption Date at a redemption price equal to the sum of 100% of the aggregate principal amount of the Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the Redemption Date. On and after the Redemption Date, interest will cease to accrue on the Notes and the Notes will cease to be outstanding.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding anticipated business and financing activities, made in this press release are forward-looking. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Actual results and outcomes could differ materially for a variety of reasons, including, among others, changes in our liquidity, financial condition, or capital allocation and financing strategies or in the debt and equity markets, including as a result of fluctuations in foreign exchange rates, changes in global economic conditions and customer spending, world events, the rate of growth of the Internet, online commerce, and cloud services, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which we enter into, maintain, and develop commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. In addition, the global economic climate and additional or unforeseen effects from the COVID-19 pandemic amplify many of these risks. These risks and uncertainties, as well as other risks and uncertainties that could cause our actual results to differ significantly from management’s expectations, are described in greater detail in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law, you are advised to consult any additional disclosures we make in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210903005454/en/

Amazon.com Investor Relations

Dave Fildes, amazon-ir@amazon.com

amazon.com/ir

Amazon.com Public Relations

Dan Perlet, amazon-pr@amazon.com

amazon.com/pr

Source: Amazon.com, Inc.

FAQ

What did Amazon announce on October 5, 2021 regarding its debt?

Amazon announced the redemption of $1 billion of its outstanding 3.300% Notes due December 5, 2021.

What is the total amount of Notes Amazon will redeem?

Amazon will redeem a total of $1 billion in Notes.

When will the redemption of Amazon's Notes take effect?

The redemption of Amazon's Notes will take effect on October 5, 2021.

What will happen to interest on the Notes after the redemption date?

Interest will cease to accrue on the Notes after the redemption date.

What is the significance of Amazon redeeming its Notes?

The redemption reflects Amazon's financial strategy and may enhance liquidity and investor confidence.