Amazon has secured a $17.5 billion senior unsecured delayed-draw term loan with Citibank as agent, available through Sept. 30, 2026, for general corporate use. Loans carry a three-year maturity, SOFR-based rates at 0.625%–0.875% margin and include no financial covenants.
Amazon entered into a $17.5 billion senior unsecured delayed-draw term loan on June 8, 2026, with Citibank N.A. as administrative agent. The facility allows Amazon to draw funds through Sept. 30, 2026, and any borrowings mature three years after drawing.
The loan features optional SOFR-based interest at margins between 0.625% and 0.875% or a floating base rate, determined by Amazon’s credit ratings. There are no financial covenants, providing flexibility for capital deployment.
This financing aligns with Amazon’s plan to invest roughly $200 billion in capital expenditures in 2026, heavily focused on AI infrastructure such as data centers and custom chips. First-quarter capex rose to $44.2 billion from $25 billion a year earlier.
By tapping debt markets, Amazon joins other tech giants borrowing to fund AI expansion, while its trailing free cash flow fell to $1.2 billion from $25.9 billion year-on-year. The loan reduces immediate cash drain and supports aggressive spending.
Finance
