Market Signals

On June 8, Amazon.com entered a term loan agreement with Citibank as administrative agent and other lenders. The deal gives Amazon a $17.5 billion senior unsecured delayed draw term loan facility. Commitments to lend expire September 30 unless fully borrowed before then. Loans borrowed under the facility mature three years from the borrowing date. Amazon can prepay loans or reduce commitments without penalty, but prepaid amounts cannot be reborrowed. Interest rates are floating. The company can choose either the Alternate Base Rate plus a 0% margin or Term SOFR plus a margin of 0.625% to 0.875%, based on Amazon's credit ratings. Proceeds will go toward general corporate purposes. The credit agreement includes standard representations and warranties but no financial covenants. If an event of default occurs and is not cured, lenders can accelerate repayment and terminate commitments. The lenders and their affiliates have provided and may continue to provide various financial services to Amazon for customary fees. The full agreement is filed as Exhibit 10.1 to the 8-K.

Broadcom Inc. filed its Form 10-Q for the quarterly period ended May 3, 2026, with the SEC on June 9, 2026. This filing covers the company's second quarter of fiscal year 2026. The report reflects results across two primary operating segments: Semiconductor Solutions and Infrastructure Software. Revenue is disaggregated into product revenue and subscriptions and services revenue. The filing details the company's significant debt portfolio, including senior notes and term loans, much of which was assumed in connection with the VMware acquisition. It also discloses the amortization of intangible assets and stock-based compensation expense. A subsequent event is noted: on June 2, 2026, Broadcom's Board declared a quarterly cash dividend of $0.53 per share, payable on June 30, 2026 to stockholders of record on June 22, 2026. The filing does not include a management outlook quote in the excerpt provided, but it is a standard quarterly update on financial position and operations.

Alphabet Inc. filed an 8-K on June 5, 2026, reporting the completion of a significant capital raise through the issuance of mandatory convertible preferred stock. On June 2, 2026, Alphabet entered into an underwriting agreement to sell 167.5 million Series A depositary shares and 167.5 million Series B depositary shares, each representing a 1/20th interest in a share of 6.25% Series A and Series B Mandatory Convertible Preferred Stock, respectively. The underwriters fully exercised their over-allotment options on June 3, 2026, purchasing an additional 25 million depositary shares of each series. The offerings closed on June 5, 2026. In connection with the pricing and the over-allotment exercise, Alphabet entered into privately negotiated capped call transactions with the underwriters or their affiliates to reduce potential dilution upon conversion of the preferred stock. The cap price for the Series A capped calls is initially $532.6704 per share of Class A common stock, and for the Series B capped calls is initially $527.7974 per share of Class C capital stock. The preferred stock carries a 6.25% annual dividend rate on the $1,000 per share liquidation preference, payable quarterly starting August 15, 2026, through May 15, 2029. Unless earlier converted, each share of Series A Preferred Stock will automatically convert into between 2.2520 and 2.8160 shares of Class A common stock, and each share of Series B Preferred Stock will convert into between 2.2740 and 2.8420 shares of Class C capital stock, on or about May 15, 2029. The filing also notes that the certificates of designations for the preferred stock were filed with the Delaware Secretary of State on June 4, 2026, establishing the preferences, limitations, and relative rights of each series.

On June 5, 2026, Alphabet Inc. filed a Current Report on Form 8-K to announce the appointment of Marsida Saraci as its Principal Accounting Officer, effective immediately. Ms. Saraci, age 47, has been with Alphabet since April 2011, most recently serving as Vice President, Finance - Deputy Controller. Prior to joining Alphabet, she spent over eight years at KPMG. In connection with her appointment, she will receive two grants of restricted stock units (GSUs): one award of $280,000 vesting in 1/20th monthly increments beginning in July 2026, and a second award of $440,000 vesting in 1/32nd monthly increments beginning in July 2026. The number of GSUs for each award will be determined by dividing the award amount by the average closing price of Alphabet's Class C capital stock during June 2026. Vested GSUs entitle the grantee to receive one share of Class C capital stock per unit. The GSUs are subject to Alphabet's Amended and Restated 2021 Stock Plan and the applicable award agreement. This filing does not report any financial results, changes in guidance, or other material operational events.

On June 2, 2026, Reid Hoffman informed Microsoft that he will not stand for re-election to the Board of Directors at the company's 2026 annual shareholder meeting. Hoffman, who has served as a director since 2017, will continue in his role until the meeting. The company stated that his decision is not due to any disagreement with management regarding operations, policies, or practices. Microsoft thanked Hoffman for his contributions.

On June 4, 2026, Alphabet Inc. filed an 8-K disclosing multiple capital raising transactions. The company entered into an equity distribution agreement with Goldman Sachs, J.P. Morgan, and Morgan Stanley to sell up to $40 billion of Class A and Class C common stock through an at-the-market offering program. Separately, Alphabet completed an underwritten stock offering of 25,459,689 shares of Class A common stock at $355.1982 per share and 25,459,689 shares of Class C capital stock at $351.8018 per share, with underwriters fully exercising over-allotment options for an additional 3,818,953 shares of each class, raising approximately $18 billion in gross proceeds. Additionally, Alphabet entered into a securities purchase agreement with an affiliate of Berkshire Hathaway Inc. for the private placement of 14,212,035 Class A shares and 14,359,656 Class C shares at prices of approximately $351.81 and $348.20 per share, respectively, for gross proceeds of $10 billion. The company also announced a depositary share offering of two series of mandatory convertible preferred stock, expected to close on June 5, 2026. These offerings were made under a shelf registration statement filed on June 1, 2026.