Published on 5/31/2017 in the Prospect News Investment Grade Daily.
New Issue: eBay details $2.5 billion four-tranche issue of fixed- and floating-rate notes
By Cristal Cody
Tupelo, Miss., May 31 – eBay Inc. detailed its previously reported $2.5 billion four-tranche issue of senior notes (Baa1/BBB+/BBB) sold on Tuesday in an FWP filing with the Securities and Exchange Commission.
eBay priced $500 million of 2.15% three-year notes at 99.899 to yield 2.185%, or a spread of Treasuries plus 75 basis points.
The company sold $400 million of floating-rate notes due Jan. 30, 2023 at par to yield Libor plus 87 bps.
eBay placed $750 million of 2.75% fixed-rate notes due Jan. 30, 2023 at 99.955 to yield 2.758%, or a Treasuries plus 100 bps spread.
The final $850 million tranche of 3.6% 10-year notes priced at 99.917 to yield 3.61% and with a spread of 140 bps over Treasures.
A three-year floating-rate tranche was dropped from the final sale.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes, which may include repayment of debt, capital expenditures, share repurchases or possible acquisitions.
eBay is a San Jose, Calif.-based online commerce company.
| Issuer: | eBay, Inc.
|
| Amount: | $2.5 billion
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| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Wells Fargo Securities LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC
|
| Co-managers: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Lebenthal & Co., LLC, MUFG, RBC Capital Markets, LLC, Standard Chartered Bank and Williams Capital Group, LP
|
| Change-of-control put: | 101%
|
| Trade date: | May 30
|
| Settlement date: | June 6
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | June 5, 2020
|
| Coupon: | 2.15%
|
| Price: | 99.899
|
| Yield: | 2.185%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 80 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at greater of par and Treasuries plus 12.5 bps
|
|
|
| Floaters
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| Amount: | $400 million
|
| Maturity: | Jan. 30, 2023
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| Coupon: | Libor plus 87 bps
|
| Price: | Par
|
| Yield: | Libor plus 87 bps
|
| Call feature: | None
|
|
|
| Five-year notes
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| Amount: | $750 million
|
| Maturity: | Jan. 30, 2023
|
| Coupon: | 2.75%
|
| Price: | 99.955
|
| Yield: | 2.758%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call before Dec. 30, 2022 at Treasuries plus 15 bps; thereafter at par
|
|
|
| Ten-year notes
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| Amount: | $850 million
|
| Maturity: | June 5, 2027
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| Coupon: | 3.6%
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| Price: | 99.917
|
| Yield: | 3.61%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call before March 5, 2027 at Treasuries plus 25 bps; thereafter at par
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