PayPal draws $1 billion under 364-day delayed-draw term loan

By Wendy Van Sickle

Columbus, Ohio, Dec. 27 – PayPal Holdings, Inc. drew down $1 billion under its $3 billion 364-day delayed-draw term loan credit facility on Dec. 22, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility, which was entered on Dec. 6, is available in up to three separate borrowings.

Current interest is Libor plus 112.5 basis points, for an effective rate of 2.78% as of Dec. 22.

The spread above Libor can range from 100 bps to 125 bps, depending on the company’s debt ratings. The commitment fee ranges from 8 bps to 12.5 bps.

JPMorgan Chase Bank, NA, Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc. are the joint lead arrangers and joint book managers and JPMorgan Chase Bank, NA is the administrative agent.

Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc. are the syndication agents. The Bank of Tokyo-Mitsubishi UFJ, Ltd. and HSBC Bank USA, NA are the documentation agents.

Proceeds may be used for capital allocation and other general corporate purposes.

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

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