Summary
eBay Inc. has entered into a new $2.0 billion unsecured five-year revolving credit facility, replacing its previous credit agreement. This new facility, maturing in November 2020, provides significant financial flexibility for working capital, capital expenditures, acquisitions, and other general corporate purposes. The company also has the option to increase the facility by an additional $1.0 billion, subject to lender approval. While no borrowings were outstanding under the new agreement as of November 9, 2015, eBay has allocated $1.5 billion of its borrowing capacity to backstop its commercial paper program. This strategic move ensures continued access to funds for repaying commercial paper obligations should other sources become unavailable. The remaining $0.5 billion is available for general corporate needs.
Key Highlights
- 1Entered into a new $2.0 billion unsecured five-year revolving credit facility.
- 2The new credit facility replaces the previous $3.0 billion agreement dated November 22, 2011.
- 3The facility matures on November 9, 2020.
- 4The company has the option to increase the facility by up to $1.0 billion.
- 5Borrowings can be used for working capital, capital expenditures, acquisitions, and general corporate purposes.
- 6A significant portion ($1.5 billion) of the facility's capacity is earmarked to support the commercial paper program.
- 7The new agreement includes customary covenants, including financial covenants related to interest coverage and leverage ratios.