Amazon.com Inc has kicked off an eight-part U.S. investment grade bond sale that market sources say is expected to price today. The package mixes floating-rate and fixed-rate notes across maturities stretching from three years to 40 years.
The shortest-dated instruments include a three-year floating-rate note maturing July 9, 2029, for which initial price talk is quoted at a SOFR equivalent. A companion three-year fixed-rate note bearing the same July 9, 2029 maturity is being marketed with initial price indications in the +65 basis points area.
For the intermediate portion of the curve, Amazon is seeking interest with five-year fixed-rate bonds due July 9, 2031, where initial price talk is reported around +80 basis points. Seven-year fixed-rate notes maturing July 9, 2033 are being pitched at approximately +90 basis points.
Longer-dated supply in the transaction includes a 10-year fixed-rate note due July 9, 2036 with initial price talk near +100 basis points; a 20-year fixed-rate note maturing July 9, 2046 marketed at about +120 basis points; and a 30-year fixed-rate bond due July 9, 2056 with initial guidance in the +130 basis points area.
The offering’s longest maturity is a 40-year fixed-rate note scheduled to mature July 9, 2066, where initial price talk is around +145 basis points. Across the set of notes, market commentary has treated the stated basis point levels as initial indications subject to change as the books develop.
The debt offering is being distributed with expected credit ratings of A1 from Moody’s Investors Service, AA from S&P Global Ratings and AA- from Fitch Ratings. These are presented as expected ratings rather than final confirmations.
This eight-part sale provides investors a range of durations and a mix of floating and fixed coupons. The initial pricing talks provide a snapshot of how the market is being approached at launch, but final pricing will depend on investor demand and the deal’s execution today.