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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (37616)	1/29/1999 11:22:00 AM
From: larry oertel	Read Replies (1) \| Respond to of 164684

Amazon.com's convertible bond issue, which was launched at par US CORP BONDS - Household Finance leads mkt NEW YORK, Jan 29 (Reuters) - A 10-year issue by Household Finance was the main feature of the U.S. corporate bond market early on Friday. Other dealings were quiet, though traders said the market had a good tone despite data on U.S. gross domestic product showing unexpectedly strong 5.6 percent growth in the fourth quarter, which hurt the benchmark 30-year Treasury bond. Players took some solace from the inflation data in the GDP report, which was at its lowest levels in nearly 40 years. ''The market feels better, but there's not too much trading going on,'' one high-yield dealer said. Household Finance brought a $1.3 billion 5.875 percent offering at 126 basis points over Treasuries. The size was up from talk of $1.0 billion on Thursday, while the yield was one basis point tighter. Lead managers of the A2/A rated issue were Salomon Smith Barney and Warburg Dillon Read. Amazon.com's (Nasdaq:AMZN - news) new convertible bond issue, which was launched at par on Thursday, was quoted at 102.25 in the secondary market. Moody's assigned a rating of Caa3 to Amazon's convertible issue and upgraded the company's older senior note issue to Caa1 from Caa2. Moody's said the ratings reflect its "expectation that Amazon.com is unlikely to generate positive cash flow for at least another two years, and is expected to invest heavily in fixed assets, intangibles, and working capital in the near term. It also cited ''the equity-like risk being taken by the debt holders as a result of the company's decision to finance its growth stage through the debt markets; the likelihood that increased profitability from more mature product segments will be offset by low profitability on new products in the near term; and the uncertainty of the company's future growth and operating strategies.'' The Dow Jones industrial average was little changed at about 9280, while the U.S. Treasury's benchmark 30-year bond was down 7/32 point at 101-31/32 to yield 5.12 percent.