HERE IT IS GUYS (and gals) - from Bloomberg -
BN 5/5 Amazon.com Sells 10-Year Notes at 10%; Raises $326 Million
New York, May 5 (Bloomberg) -- Amazon.com Inc., the online
bookseller, raised $325.987 million by selling 10-year junk-rated
bonds at a 10 percent yield to maturity, a person familiar with
the sale said.
The private sale was increased from $275 million originally
planned. The 10 percent yield was at the bottom of the expected
range of 10 percent to 10 1/4 percent, the person said. Morgan
Stanley Dean Witter & Co. handled the sale.
The zero-coupon notes priced at a discount of 61.507 percent
of par. The notes don't pay interest until Nov. 1, 2003, when the
coupon becomes 10 percent.
The notes can be redeemed, or called, any time before May 1,
2003, at a yield of 50 basis points over the 10-year Treasury
yield. The notes then can be called according to a call schedule.
Investors have to pay for the bonds by Friday.
The notes are rated Caa2 by Moody's Investors Service Inc.,
three steps above its lowest rating.
The money raised will be used to repay a $75 million term
loan, pay for future operation losses and fund business
development, which could include acquisitions.
The company, based in Seattle, Washington, sells books over
the Internet.
--Wes Goodman in the New York newsroom (212) 318 2669./brs |
