eBay enters into $2 billion five-year revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, March 11 – eBay, Inc. entered into a credit agreement on March 6 with agent JPMorgan Chase Bank, NA that provides for a $2 billion five-year unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The company may increase the revolver by up to $1 billion.

Interest is equal to Libor plus 87.5 basis points to 137.5 bps, based on eBay’s debt ratings. The commitment fee ranges from 7 bps to 17.5 bps.

The new agreement replaces a prior $2 billion unsecured revolving credit agreement, which was terminated.

Funds borrowed under the agreement may be used for working capital, capital expenditures, acquisitions and other general corporate purposes.

eBay must maintain a maximum consolidated leverage ratio of 4 times, with a step-up to 4.5 times for the first four fiscal quarters following a permitted acquisition.

As of March 6, no borrowings were outstanding under the agreement, which matures on March 6, 2025.

Citibank, NA and Deutsche Bank Securities Inc. acted as syndication agents; Bank of America, NA, HSBC Bank USA, NA and Wells Fargo Bank, NA acted as documentation agents; and JPMorgan, BofA Securities, Inc., Citi, Deutsche Bank, HSBC and Wells Fargo Securities, LLC acted as joint lead arrangers and book managers.

The commerce and payments platform is based in San Jose, Calif.

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