eBay gets $3 billion revolver with $100 million swingline subfacility

By Aleesia Forni

Columbus, Ohio, Nov. 28 - eBay Inc. entered into a new $3 billion five-year revolving credit facility that includes a $300 million letter-of-credit subfacility and a $100 million swingline subfacility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the revolver ranges from Libor plus 62.5 basis points to 112.5 bps, with rates based on the company's debt rating.

Commitment fees range from 5 bps to 15 bps.

The company has the option to increase the revolver by up to $1 billion and may designate its subsidiaries as additional borrowers under the agreement.

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

As of Nov. 22, no borrowings or letters of credit were outstanding under the agreement.

The company has a $1 billion commercial paper program, and it maintains a corresponding amount of borrowing capacity to repay commercial paper borrowings if it is unable to repay them from other sources once they are due.

The company had $2 billion of borrowing capacity available for other purposes permitted by the agreement at Nov. 22.

This new credit facility replaces the company's $1.8 billion unsecured revolver.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are joint lead arrangers and joint book managers.

JPMorgan Chase Bank NA is administrative agent.

Citibank NA and Deutsche Bank Securities Inc. are syndication agents.

Bank of America NA, HSBC Bank USA NA, the Royal Bank of Scotland plc and Wells Fargo Bank NA are documentation agents.

eBay is a San Jose, Calif.-based online marketplace.

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