Amazon Receives a $8 Billion Loan

Amazon.com Inc. said on Tuesday that it has reached an agreement with certain lenders for an unsecured $8 billion loan.

The loan will mature in 364 days with a 364-day extension option, and the funds will be used for general company purposes.

Amazon (NASDAQ:AMZN) has leveraged multiple funding sources to support capital expenditures, debt repayments, acquisitions, and operating cash needs during the past several months, according to a company spokeswoman who spoke with Reuters.

The online store has braced for a probable halt in growth as rising inflation pushes businesses and consumers to curtail spending. Combined with a strong dollar, this caused Amazon's share price to decline by almost 50 percent in 2022.

It also mentioned workforce reductions for the start of 2023, although the number was not specified. A source told Reuters in November that the company planned to remove around 10,000 workers.

At the end of the third quarter, which ended on September 30th, Amazon had approximately $35 billion in cash and cash equivalents and over $59 billion in long-term debt.

Toronto Dominion was the administrative agent for the credit transaction between DBS Bank and Mizuho Bank, according to Amazon.