Amazon More Than Doubles Credit Line as It Expands Globally
Amazon.com Inc. is more than doubling its line of credit to $7 billion as it takes steps to fuel revenue growth.
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(Bloomberg) -- Amazon.com Inc. is more than doubling its line of credit to $7 billion as it takes steps to fuel revenue growth, including building data centers, expanding internationally and producing original video content.
The line of credit, which was previously $3 billion, is led by Bank of America Corp. and HSBC Holdings Plc. Amazon opened the credit line in 2016. The new terms extend the agreement until April 27, 2021.
The new agreement is a sign of how Amazon is positioning itself for more spending even after it said Thursday it will boost the yearly price of Prime memberships 20 percent to $119. That will generate an additional $1.5 billion or so in annual revenue. The company has been making big investments in India and the U.S., where it’s engaged in a price war with Walmart Inc. as it seeks to sell more groceries and household goods.
The company on Thursday posted higher profit in the first quarter, helped by revenue that rose 43 percent from the same period last year. Amazon forecast more growth ahead, which helped drive shares 3.6 percent higher on Friday.
To contact the reporter on this story: Spencer Soper in Seattle at ssoper@bloomberg.net.
To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Dan Wilchins, Mark Milian
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