Published on 7/23/2014 in the Prospect News Investment Grade Daily.
New Issue: eBay prices $3.5 billion offering of senior notes in five tranches
By Aleesia Forni
Virginia Beach, July 23 – eBay Inc. priced $3.5 billion of senior notes (A2/A/A) in five parts during Wednesday’s session, according to a market source and a FWP filed with the Securities and Exchange Commission.
The offering included a $450 million tranche of three-year floaters priced at par to yield Libor plus 20 basis points.
A second tranche was $400 million of five-year notes sold at par to yield Libor plus 48 bps.
There was also $1.15 billion of 2.2% five-year notes sold at 99.788 to yield 2.245%, or Treasuries plus 60 bps.
A $750 million tranche of 2.875% seven-year notes priced with a spread of Treasuries plus 80 bps.
Pricing was at 99.779 to yield 2.91%.
Finally, $750 million of 3.45% notes due 2024 priced at 99.899 to yield 3.462%, or Treasuries plus 100 bps.
Proceeds will be used for general corporate purposes, including the repayment of outstanding commercial paper borrowings.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC.
The global commerce and payments platform is based in San Jose, Calif.
| Issuer: | eBay Inc.
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| Issue: | Senior notes
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| Amount: | $3.5 billion
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| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets LLC, RBS Securities Inc., Standard Chartered Bank, The Williams Capital Group LP
|
| Trade date: | July 23
|
| Settlement date: | July 28
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC-registered
|
|
|
| Three-year floaters
|
| Amount: | $450 million
|
| Maturity: | July 28, 2017
|
| Coupon: | Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Libor plus 20 bps
|
| Price talk: | Libor plus 20 bps, tightened from Libor plus high-20 bps area
|
|
|
| Five-year floaters
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| Amount: | $400 million
|
| Maturity: | Aug. 1, 2019
|
| Coupon: | Libor plus 48 bps
|
| Price: | Par
|
| Yield: | Libor plus 48 bps
|
| Price talk: | Libor equivalent to five-year notes
|
|
|
| Five-year notes
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| Amount: | $1.15 billion
|
| Maturity: | Aug. 1, 2019
|
| Coupon: | 2.2%
|
| Price: | 99.788
|
| Yield: | 2.245%
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 65 bps area, tightened from Treasuries plus 75 bps area
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 1, 2021
|
| Coupon: | 2.875%
|
| Price: | 99.779
|
| Yield: | 2.91%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 85 bps area, tightened from Treasuries plus 95 bps area
|
|
|
| 10-year notes
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| Amount: | $750 million
|
| Maturity: | Aug. 1, 2024
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| Coupon: | 3.45%
|
| Price: | 99.899
|
| Yield: | 3.462%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 105 bps area, tightened from Treasuries plus 115 bps area
|
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