PayPal Holdings, Inc. (Nasdaq: PYPL) announced today that it has priced its offering of $4.0 billion aggregate principal amount of senior notes, consisting of $1,000,000,000 aggregate principal amount of 1.350% notes due 2023, $1,000,000,000 aggregate principal amount of 1.650% notes due 2025, $1,000,000,000 aggregate principal amount of 2.300% notes due 2030 and $1,000,000,000 aggregate principal amount of 3.250% notes due 2050. The offering is expected to close May 18, 2020, subject to customary closing conditions.Payments
PayPal estimates that the net proceeds from the offering will be approximately $3,974,740,000, before deducting offering expenses. PayPal intends to use a portion of the net proceeds from the offering to repay outstanding borrowings under its five-year revolving credit facility (the “Revolving 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 or strategic investments. As of March 31, 2020, $3.0 billion was outstanding under the Revolving Credit Facility at a weighted average interest rate of 2.19%.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC 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 (the “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. Alternatively, copies of the preliminary prospectus supplement and accompanying prospectus, and, when available, the final prospectus supplement for the offering may be obtained by contacting: BofA Securities, Inc. at NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina, 28255-0001, Attn: Prospectus Department or at (800) 294-1322; Citigroup Global Markets Inc. at c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or at (800) 831-9146; or J.P. Morgan Securities LLC at Attention: Investment Grade Syndicate Desk, 383 Madison Avenue, New York, New York 10179, 3rd Floor, or collect at (212) 834-4533.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.