Summary
eBay Inc. (EBAY) announced on November 13, 2006, its entry into a material definitive agreement regarding a new Credit Facility. This filing details a $1 billion unsecured, five-year revolving credit facility established on November 7, 2006. The facility, with Bank of America, N.A. as the Administrative Agent and other lenders, is designed to enhance eBay's financial flexibility for various corporate purposes, including working capital, capital expenditures, and acquisitions. While eBay has not yet drawn on this facility, it provides a significant source of capital that can be accessed throughout its term, which concludes on November 7, 2011, with potential for extension. The agreement includes provisions for borrowing, prepayment, and reborrowing, as well as the possibility to increase the facility size to $2 billion. It also contains standard covenants and events of default, including a financial covenant related to a maximum consolidated leverage ratio, underscoring the company's commitment to maintaining financial discipline while securing access to funds.
Key Highlights
- 1eBay Inc. entered into a $1 billion unsecured, five-year revolving credit facility on November 7, 2006.
- 2The primary purpose of the facility is to enhance eBay's financial flexibility.
- 3Funds can be used for working capital, capital expenditures, acquisitions, and other general corporate purposes.
- 4eBay has not borrowed any funds under this facility as of the filing date.
- 5The credit facility has a maturity date of November 7, 2011, with an option to extend for up to two additional years.
- 6The company has the option to increase the facility size to $2 billion, subject to lender agreement.
- 7The agreement includes customary covenants, including a financial covenant requiring compliance with a maximum consolidated leverage ratio.