Online Investment Investment News Amazon gets $8 billion emergency loan

Amazon gets $8 billion emergency loan

Categories: Inc. said Tuesday it has reached an agreement with some lenders to provide the e-commerce giant with an $8 billion unsecured loan.

The loan matures in 364 days, with an option to extend for another 364 days, and the funds will be used for general corporate purposes.

“Given the uncertain macroeconomic environment, we have used various financing options over the past several months to support capital expenditures, debt repayments, acquisitions and working capital needs,” said an Amazon spokesman.

The online retailer is preparing for a likely slowdown as skyrocketing inflation forces businesses and consumers to cut costs. This, combined with a strong dollar, has caused Amazon stock to decline by about 50 percent in 2022.

The company also noted employee layoffs in early 2023.

According to Amazon, the administrative agent for the loan agreement, in which DBS Bank and Mizuho Bank were lenders, was Toronto Dominion.