Published on 5/11/2020 in the Prospect News Investment Grade Daily.
New Issue: PayPal Holdings prices $4 billion four-part offering of notes
By Cristal Cody
Tupelo, Miss., May 11 – PayPal Holdings Inc. priced $4 billion of notes (A3/BBB+/BBB+) in four tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1 billion offering of 1.35% three-year notes priced at 99.908 to yield 1.381%, or a spread of 115 basis points over Treasuries.
PayPal priced $1 billion of 1.65% five-year notes at 99.98 to yield 1.654%, or a Treasuries plus 130 bps spread.
A $1 billion tranche of 2.3% 10-year notes priced at 99.893 to yield 2.312%. The notes priced with a Treasuries plus 160 bps spread.
PayPal sold $1 billion of 3.25% 30-year notes at 99.618 to yield 3.27% and a 185 bps over Treasuries spread.
The three-year notes were talked at the 150 bps over Treasuries area, the five-year notes at the 165 bps spread area, 10-year notes at the 200 bps spread area and 30-year notes were talked at the 225 bps spread area.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for to repay outstanding borrowings, in whole or in part, under the company’s revolving credit facility and for general corporate purposes.
PayPal is a San Jose, Calif.-based online payments system operator.
| Issuer: | PayPal Holdings Inc.
|
| Amount: | $4 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, nabSecurities, LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., Standard Chartered Bank, TD Securities (USA) LLC, Westpac Capital Markets LLC, Academy Securities, Inc. and Siebert Williams Shank & Co., LLC
|
| Trade date: | May 11
|
| Settlement date: | May 18
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2023
|
| Coupon: | 1.35%
|
| Price: | 99.908
|
| Yield: | 1.381%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps before June 1, 2023
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 150 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2025
|
| Coupon: | 1.65%
|
| Price: | 99.98
|
| Yield: | 1.654%
|
| Spread: | Treasuries plus 130 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps before May 1, 2025; par thereafter
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 165 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2030
|
| Coupon: | 2.3%
|
| Price: | 99.893
|
| Yield: | 2.312%
|
| Spread: | Treasuries plus 160 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps before March 1, 2030; par thereafter
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 200 bps area
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 1, 2050
|
| Coupon: | 3.25%
|
| Price: | 99.618
|
| Yield: | 3.27%
|
| Spread: | Treasuries plus 185 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps before Dec. 1, 2049; par thereafter
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 225 bps area
|
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