Overview
- Amazon disclosed in a June 8 SEC filing that it secured a $17.5 billion delayed‑draw term loan arranged by a Citibank‑led syndicate, with lender commitments that expire on Sept. 30 and any drawn amounts maturing three years after draw.
- The new loan adds to a recent wave of Amazon financing that included a near‑record March bond sale of roughly $54–57 billion and a Canadian bond issuance, moves reporters said pushed the company’s new financing past about $31.5 billion in roughly 48 hours.
- The five largest cloud and AI firms have sold about $159 billion in corporate bonds through early June 2026, a 47% increase from last year and a sign that hyperscalers are shifting heavily toward debt to pay for AI data centers, chips, power and cooling systems.
- Credit analysts and ratings agencies have warned the borrowing surge will raise leverage and could produce near‑term negative free operating cash flow for some firms, even as major banks show continued appetite to underwrite large facilities.
- Companies prefer delayed‑draw loans and long‑dated bonds because those structures let them match financing to decades‑long data center lifespans, but the pace and scale of borrowing could push yields higher and crowd out smaller, lower‑rated issuers.