E-commerce giant Amazon.com can now spend a heck of a lot more money at any given time.
Today it disclosed that it can borrow as much as $2 billion through a new credit facility from Bank of America. The deal is good for two years, but the parties can extend it for as many as three more years, according to an Amazon regulatory filing today with the U.S. Securities and Exchange Commission.
The money should help Amazon meet demand for its products and services, like the Fire Phone, its market-leading public cloud, or its supply of used self-help books.
But given how fast the Amazon Web Services cloud has been growing in recent years, and given how much money Amazon spends on it, it's easy to conclude that the cloud could be getting a major earmark for the credit line.
Indeed, outgoing chief financial officer Tom Szkutak said on Amazon's most recent earnings call, "The increase in capital expenditures reflects additional investments in support of continued business growth consisting of additional capacity to support our fulfillment operations and investments in technology infrastructure including Amazon Web Services."
The company frequently lowers prices, enters new geographies, and rolls out services for its cloud. And even as the cloud's growth isn't hitting the same high levels it was a few years ago, it's still got to grow. So the money should be a big help as Amazon simultaneously spends in other areas, like set-top boxes.