Proactive Investors - Run By Investors For Investors

Amazon to finance Whole Foods acquisition through monster unsecured loan note offering

Somehow, issuing a huge pile of debt improved the retail giant's debt rating with Moody's
Amazon screenshot
Moody's upped Amazon's credit rating

Online retail giant Inc (NASDAQ:AMZN) is to issue up to US$16bn in bonds to finance its acquisition of Whole Foods Market Inc (NASDAQ:WFM).

The senior unsecured notes will be available via a private offering.

Debt rating agency Moody’s assigned a Baa1 rating to the proposed offering, and changes its rating outlook on Amazon to ‘positive’ from ‘stable’.

READ: Amazon Inc poised to clinch its biggest ever deal by splashing US$13.7bn on Whole Foods Market Inc

"The change in outlook to positive reflects our view that despite the increase in debt, the Whole Foods acquisition is an immediate credit positive for the company on a variety of fronts," said Moody's vice president Charlie O'Shea.

"Whole Foods provides Amazon with greater scale and a crucial brick-and-mortar presence in a segment where it has been trying to grow, and the almost 500 existing Whole Foods locations can be utilized to expand food delivery, as well as provide pick-up points for online orders of any type," O'Shea said.

View full AMZN profile View Profile Timeline

February 14 2019

Related Articles

May 23 2019
Company is looking for more acquisitions after integration of Metro Rod
May 21 2019
H&T investing in digital offeringProfits gain in 2018Outlook upbeat as strategy pays off
medical imaging graphic
June 13 2019
Here we take a closer look at the imaging and diagnostics firm IQ-AI

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use