Amazon has secured a $17.5 billion delayed draw term loan facility from Citibank and other lenders, according to a June 10 SEC filing. The agreement gives Amazon additional borrowing capacity for corporate needs, capital spending, and debt repayment.
Loan Terms: Drawdown by Sept. 30
Bank commitments under the facility expire on Sept. 30. Amazon can draw funds before that date, and any borrowed amount will mature three years from the drawdown date. Citibank N.A. serves as the administrative agent.
Amazon stated that borrowings under the DDTL facility will be used for general corporate purposes, without naming any specific project. However, an Amazon spokesperson told Bloomberg that proceeds may support investments, capital expenditures, and debt repayment.
AI Spending Drives Financing Need
The new loan could help fund Amazon's artificial intelligence investments. Amazon has outlined plans to spend roughly $200 billion on AI infrastructure and other capex this year. Bloomberg linked the facility to Amazon's AI infrastructure plans and its investments in AI companies. Amazon is expected to invest up to $50 billion in OpenAI.
It has already invested $10 billion in Anthropic, with another $15 billion possibly following. Amazon continues to spend on cloud, data centers, and computing capacity.
Recent Bond Sales Add Context
On June 8, Amazon sold 14 billion Canadian dollars of high-grade bonds, equivalent to about $10 billion. Since March, Amazon has also issued bonds in euros, U.S. dollars, and Swiss francs. The company hasn't said the loan replaces any bond sale or disclosed any drawdown under the facility.
The DDTL agreement includes customary representations, warranties, and default events but no financial covenants. If a default event occurs and remains uncured, unpaid amounts may become immediately due and lenders may terminate commitments. Amazon listed the banks as full-service financial institutions involved in trading, commercial banking, investment banking, advisory, and other activities.