Why Amazon Stock Slipped on Monday
Even within the giant U.S. stock market, it's not every day that a company announces an 11-figure bond issue. Monday was an exception, with Amazon (NASDAQ: AMZN) floating $12.75 billion of debt. For a company of Amazon's size, that's quite a bit of scratch, and investors responded to the news by trading its stock down by more than 2% on the day.
Amazon's unsecured senior debt was issued in seven parts, all of which have different coupons and maturities. These range from 2.73% notes maturing in 2024 to 4.1% notes coming due in 2062. At least the interest payments are consistent throughout the series; for each, those disbursements will be effected on April 13 and Oct. 13 of every year starting this October.
Image source: Amazon.
Source Fool.com
