Summary
On March 9, 2016, eBay Inc. successfully closed the sale of $1.5 billion in senior unsecured notes. This offering was comprised of two tranches: $750 million of 2.500% notes due in 2018 and $750 million of 3.800% notes due in 2022. The proceeds from this issuance were raised under an effective shelf registration statement, indicating the company's ongoing access to capital markets. This debt financing provides eBay with additional capital, which could be used for various corporate purposes such as funding operations, strategic initiatives, or refinancing existing debt. Investors in these notes are lending to eBay with specific interest rates and maturity dates, while the company retains the option to redeem the notes early and is subject to repurchase obligations in the event of a Change of Control Triggering Event. This filing primarily details the completion of the debt offering and its associated terms.
Key Highlights
- 1eBay Inc. closed a $1.5 billion senior unsecured note offering on March 9, 2016.
- 2The offering consisted of $750 million in 2.500% notes due 2018 and $750 million in 3.800% notes due 2022.
- 3The notes were issued under eBay's effective shelf registration statement (Registration No. 333-197522).
- 4The transaction was facilitated by a syndicate of underwriters led by J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.
- 5The notes are redeemable at eBay's option.
- 6A Change of Control Triggering Event would obligate eBay to repurchase the notes at 101% of their principal amount plus accrued interest.