plans to raise money by selling debt denominated in euros, the company said Monday.
The move has been expected on Wall Street since the online retailer announced a $185 million quarterly net
loss Wednesday, prompting concerns that it could be running out of cash.
The Seattle-based company said it will file with the
Securities and Exchange Commission
to sell 600 million euro-denominated convertible subordinated notes. The notes would come due in 2010.
"They want the additional buffer to be able to fund what are expected to be additional losses over the next several quarters," said Sara Farley, analyst for
, which has not done underwriting for Amazon and rates the company's stock a hold.
In a conference call after the company reported earnings last week, Amazon officials seemed optimistic about growth despite the continued and widening losses, convincing some analysts that a debt offering was imminent, Farley said.
The company did not specify how it plans to use the money it would raise, though it prominently mentioned its British and German Web sites in a news release announcing the filing.
Amazon has said the two sites together generated sales of $71 million in the fourth quarter, below the sales figures for single product categories, like toys and music, in the U.S.
The European sites have been in business for about a year.
An Amazon spokeswoman did not immediately return calls.
Amazon shares fell 3 1/4, or 4%, to 75 1/2 from Friday's close. (The stock closed Monday down 3 11/16, or 4.7%, at 75.)