eBay reports early tenders of 43.9% of 2.875% notes due 2021

By Wendy Van Sickle

Columbus, Ohio, June 22 – eBay Inc. took in tenders of $329,236,000, or 43.9%, of its $750 million 2.875% notes due 2021 (Cusip: 278642AK9) by the consent deadline of its cash tender offer and for any and all of the notes and concurrent consent solicitation, according to a press release.

The tender price will be $1,028.20 per $1,000 principal amount, which was determined using a fixed spread of 12.5 basis points above the 1.75% U.S. Treasury reference security due July 31, 2021.

To receive the total consideration, including a $30 consent fee, noteholders had to validly tender, and not withdraw, their notes and deliver consents by 5 p.m. ET on June 19, the consent fee deadline.

The company will also pay accrued interest.

Pricing was determined at 11 a.m. ET on June 19.

Under the consent solicitation, the company is soliciting consents to amend the indenture governing the notes to shorten the period required for the optional redemption of the notes to two calendar days from 30 calendar days.

Holders who tender their notes must deliver a corresponding consent to the amendment.

The offer was announced on June 8 and will expire at 11:59 p.m. ET on July 6.

Early settlement was planned for June 22, and final settlement is expected on July 7.

The offer and consent solicitation were conditioned upon the consummation of a proposed new debt financing. eBay settled a $750 million reopening of two tranches of senior notes (Baa1/BBB+/BBB) on June 15, as previously reported.

Credit Suisse Securities (USA) LLC is the dealer manager and solicitation agent (800 820-1653, 212 538-5828).

D.F. King & Co. Inc. is working as the tender and information agent (banks and brokers: 212 269-5550, noteholders: 800 591-8263, www.dfking.com/ebay).

eBay is a San Jose, Calif.-based online commerce company.

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