PayPal gets $3 billion 364-day delayed-draw loan at 100-125 bps spread

By Susanna Moon

Chicago, Dec. 6 – PayPal Holdings, Inc. obtained a $3 billion 364-day delayed-draw term loan credit facility, which is available in up to three separate borrowings.

The company entered into a credit agreement on Tuesday with JPMorgan Chase Bank, NA, Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc. as joint lead arrangers and joint book managers and JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will be Libor plus 100 basis points to 125 bps, based on the company’s debt ratings. The commitment fee ranges from 8 bps to 12.5 bps.

Proceeds may be used for capital allocation and other general corporate purposes.

As of Tuesday, no borrowings were outstanding under the credit agreement.

The credit agreement will terminate on Dec. 4.

Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc. are the syndication agents. The Bank of Tokyo-Mitsubishi UFJ, Ltd. and HSBC Bank USA, NA are the documentation agents.

The online payments company is based in Palo Alto, Calif.

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