Alphabet Just Borrowed $25 Billion, and $2.5 Billion of It Isn't Due Until 2066
Some of this money doesn't have to be paid back for 40 years. The servers the search giant is buying are depreciated over about six years.
Overview
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) closed a $25 billion senior notes sale on Monday -- ten separate tranches, with maturities running from 2028 all the way out to 2066.
The size isn't the interesting part. Against a market value of about $4.2 trillion, $25 billion is well under 1% of the company. The interesting part, to me, is the shape. About $10 billion of the debt doesn't come due for at least 20 years, and the longest slice, $2.5 billion carrying a 6.5% interest rate, isn't due until August 2066.
Details
That's a 40-year loan, taken out by a company whose servers are worn out, by its own accounting, in about six years.
Source
Originally published at www.fool.com.