PayPal announced that it has priced its offering of $5.0 billion
PayPal Holdings, Inc. (NASDAQ: PYPL) announced that it has priced its offering of $5.0 billion aggregate principal amount of senior notes, consisting of $1.0 billion aggregate principal amount of 2.200% notes due 2022, $1.25 billion aggregate principal amount of 2.400% notes due 2024, $1.25 billion aggregate principal amount of 2.650% notes due 2026 and $1.5 billion aggregate principal amount of 2.850% notes due 2029.
The offering is expected to close September 26, 2019, subject to customary closing conditions. PayPal estimates that the net proceeds from the offering will be approximately $4.97 billion, before deducting offering expenses. PayPal intends to use a portion of the net proceeds from the offering to repay outstanding borrowings under its 364-day term loan credit facility and the remainder for general corporate purposes, which may include funding the repayment or redemption of outstanding debt, share repurchases, ongoing operations, capital expenditures and possible acquisitions of businesses or assets and strategic investments.
As of June 30, 2019, $2.5 billion was outstanding under PayPal’s 364-day term loan credit facility at a weighted average interest rate of 3.47%.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., BofA Securities, Inc., HSBC Securities (USA) Inc. and MUFG Securities Americas Inc. are acting as joint book-running managers of the offering.
This offering is being made under an automatic effective shelf registration statement on Form S-3 filed by PayPal with the Securities and Exchange Commission (SEC) and only by means of a prospectus supplement and accompanying prospectus. Before you invest, you should read the prospectus supplement and accompanying prospectus, as well as other documents PayPal has filed or will file with the SEC for more complete information about PayPal and this offering. These documents may be obtained for free by searching the SEC online database (EDGAR) on the SEC website at www.sec.gov.