Summary
eBay Inc. (EBAY) filed an 8-K on February 29, 2016, to report the closing of its offering of $750 million in 6.00% Notes due 2056. This debt issuance was conducted under the company's existing shelf registration statement and involved a syndicate of prominent underwriters led by J.P. Morgan Securities LLC. These Notes carry a fixed coupon of 6.00% and mature in 2056, offering a long-term financing option for eBay. The filing details specific terms, including the company's option to redeem the notes starting March 1, 2021, and a provision requiring the repurchase of notes at 101% of par value if a Change of Control Triggering Event occurs. Investors should note that the proceeds are intended to fund general corporate purposes.
Key Highlights
- 1eBay Inc. successfully closed a $750 million offering of 6.00% Senior Notes due 2056 on February 29, 2016.
- 2The Notes were issued under eBay's effective shelf registration statement on Form S-3.
- 3The offering was underwritten by a syndicate of major financial institutions, including J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.
- 4eBay has the option to redeem the Notes in whole or in part at 100% of the principal amount, plus accrued interest, starting March 1, 2021.
- 5A Change of Control Triggering Event provision mandates eBay to offer to repurchase the Notes at 101% of the principal amount, plus accrued interest, subject to exceptions.
- 6The filing includes various exhibits detailing the Underwriting Agreement, Indenture, Supplemental Indenture, and the form of the Notes.
- 7A press release dated February 22, 2016, announcing the agreement to sell the Notes, is also attached as an exhibit.