8-KLeadership ChangesFinancial Events

PayPal Holdings, Inc. 8-K Report, Financial Obligation (Sep 28, 2017)

Filed September 28, 2017For Securities:PYPL

Summary

PayPal Holdings, Inc. (PYPL) filed an 8-K on September 27, 2017, disclosing two significant events. Firstly, on September 26, 2017, the company drew down $800 million from its revolving credit facility for general corporate purposes, including funding the recent acquisition of Swift Financial Corporation, stock repurchases, and working capital. This drawdown leaves approximately $1.2 billion in remaining availability under the facility. Secondly, PayPal announced the appointment of Rodney C. Adkins to its Board of Directors, effective September 26, 2017. Mr. Adkins will serve on the Audit, Risk, and Compliance Committee and fills a newly created vacancy, increasing the Board size to eleven members. His appointment is not a result of any specific arrangement or undisclosed transaction with the company.

Key Highlights

  • 1PayPal drew down $800 million from its revolving credit facility on September 26, 2017.
  • 2Funds are allocated for general corporate purposes, including the acquisition of Swift Financial Corporation, stock repurchases, and working capital.
  • 3Following the drawdown, approximately $1.2 billion remains available under the credit facility.
  • 4The interest rate on the borrowed amount is one-month LIBOR plus a margin of 1.125% (2.36% as of September 26, 2017).
  • 5Rodney C. Adkins was appointed to the Board of Directors effective September 26, 2017.
  • 6Mr. Adkins will serve as a member of the Audit, Risk, and Compliance Committee.
  • 7The Board size has increased from ten to eleven members with this appointment.

Frequently Asked Questions

PayPal drew down $800 million for general corporate purposes, which include funding the recent acquisition of Swift Financial Corporation, stock repurchases, and bolstering working capital.

After drawing down $800 million, PayPal has approximately $1.2 billion remaining in availability under its revolving credit facility.

Rodney C. Adkins has been appointed as a new member of PayPal's Board of Directors and will serve on the Audit, Risk, and Compliance Committee. His appointment fills a vacancy and increases the board's size.

No, there are no arrangements or understandings with other persons related to Mr. Adkins' appointment, and no transactions requiring disclosure under Item 404(a) of Regulation S-K have occurred.