PayPal draws down $800 million under revolving credit facility

By Marisa Wong

Morgantown, W.Va., Sept. 28 – PayPal Holdings, Inc. drew down $800 million under its revolving credit facility on Sept. 26, according to an 8-K filing with the Securities and Exchange Commission.

The borrowing bears interest at one-month Libor plus a margin of 112.5 basis points, or 2.36% as of Sept. 26.

The company expects to use the funds for general corporate purposes including, among other things, costs related to its acquisition of Swift Financial Corp. that closed on Sept. 19, stock repurchases and working capital.

Following the drawdown, the remaining availability under the facility is about $1.2 billion.

PayPal entered into the five-year credit agreement in July 2015.

The online payments company is based in Palo Alto, Calif.

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