New Issue: PayPal Holdings prices $5 billion of fixed-rate notes in four parts

By Cristal Cody

Tupelo, Miss., Sept. 19 – PayPal Holdings Inc. priced $5 billion of notes (BBB+/BBB+) in four tranches on Thursday on the tight side of guidance, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $1 billion of 2.2% three-year notes at 99.873 to yield 2.244%, or a spread of 55 basis points over Treasuries.

PayPal priced $1.25 billion of 2.4% five-year notes at 99.939 to yield 2.413%. The notes came at a Treasuries plus 75 bps spread.

A $1.25 billion tranche of 2.65% seven-year notes priced at a Treasuries plus 95 bps spread, or 99.752 to yield 2.689%.

In the final tranche, PayPal sold $1.5 billion of 2.85% 10-year notes at 99.663 to yield 2.889%. The notes priced with a 110 bps over Treasuries spread.

A tranche of floating-rate notes was dropped from the offering.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., BofA Securities, Inc., HSBC Securities (USA) Inc. and MUFG were the bookrunners.

PayPal held fixed income investor calls for the offering on Tuesday.

Proceeds will be used to repay outstanding debt under the company’s existing 364-day credit facility and for general corporate purposes.

PayPal is a San Jose, Calif.-based online payments system operator.

Issuer:	PayPal Holdings Inc.
Amount:	$5 billion
Description:	Notes
Bookrunners:	Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., BofA Securities, Inc., HSBC Securities (USA) Inc. and MUFG
Co-managers:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Wells Fargo Securities, LLC, Academy Securities, Inc., Scotia Capital (USA) Inc., Barclays, Williams Capital Group, LP, Mizuho Securities USA LLC, nabSecurities, LLC, RBC Capital Markets, LLC, Standard Chartered Bank, TD Securities (USA) LLC and Westpac Capital Markets LLC
Trade date:	Sept. 19
Settlement date:	Sept. 26
Ratings:	S&P: BBB+
	Fitch: BBB+
Distribution:	SEC registered
Marketing:	Fixed income investor calls
Three-year notes
Amount:	$1 billion
Maturity:	Sept. 26, 2022
Coupon:	2.2%
Price:	99.873
Yield:	2.244%
Spread:	Treasuries plus 55 bps
Call feature:	Make-whole call at Treasuries plus 10 bps before Sept. 26, 2022
Change-of-control put:	101%
Price guidance:	Treasuries plus 60 bps area, plus or minus 5 bps; initial talk at Treasuries plus 75 bps-80 bps area
Five-year notes
Amount:	$1.25 billion
Maturity:	Oct. 1, 2024
Coupon:	2.4%
Price:	99.939
Yield:	2.413%
Spread:	Treasuries plus 75 bps
Call features:	Make-whole call at Treasuries plus 15 bps before Sept, 1, 2024; thereafter at par
Change-of-control put:	101%
Price guidance:	Treasuries plus 80 bps area, plus or minus 5 bps; initial talk at Treasuries plus 95 bps-100 bps area
Seven-year notes
Amount:	$1.25 billion
Maturity:	Oct. 1, 2026
Coupon:	2.65%
Price:	99.752
Yield:	2.689%
Spread:	Treasuries plus 95 bps
Call features:	Make-whole call at Treasuries plus 15 bps before Aug. 1, 2026; thereafter at par
Change-of-control put:	101%
Price guidance:	Treasuries plus 100 bps area, plus or minus 5 bps; initial talk at Treasuries plus 115 bps-120 bps area
10-year notes
Amount:	$1.5 billion
Maturity:	Oct. 1, 2029
Coupon:	2.85%
Price:	99.663
Yield:	2.889%
Spread:	Treasuries plus 110 bps
Call features:	Make-whole call at Treasuries plus 20 bps before July 1, 2029; thereafter at par
Change-of-control put:	101%
Price guidance:	Treasuries plus 115 bps area, plus or minus 5 bps; initial talk at Treasuries plus 130 bps-135 bps area

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