PayPal Holdings signs for $5 billion five-year revolving facility

Chicago, June 13 – PayPal Holdings, Inc., PayPal Australia Pty Ltd., PayPal (Europe) Sarl and Cie SCA entered into a $5 billion revolving credit agreement on June 7, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement includes a $150 million letter-of-credit sub-facility and a $600 million swingline sub-facility.

There is a $2 billion accordion.

Interest will be at SOFR plus 75 basis points to 125 bps, based on PayPal’s debt ratings. The benchmark rate will be related to the currency of the borrowings, which may be in dollars, euros, sterling and Australian dollars.

The commitment fee starts at 6 bps and goes to 12.5 bps, based on a five-level grid.

JPMorgan Chase Bank, NA and J.P. Morgan Securities Australia Ltd. are the administrative agents.

JPMorgan Chase Bank, NA, Deutsche Bank Securities Inc., BofA Securities, Inc., Wells Fargo Securities, LLC, Goldman Sachs Bank USA and Citibank, NA are the joint lead arrangers and joint bookrunners.

Deutsche Bank Securities Inc., Bank of America, NA, Wells Fargo Bank, NA, Goldman Sachs Bank USA and Citibank, NA are the syndication agents.

Barclays, BNP Paribas, Morgan Stanley Senior Funding, Inc., HSBC Bank USA, NA, MUFG Bank, Ltd., Bank of Nova Scotia and Toronto-Dominion Bank, New York branch are the documentation agents.

Proceeds may be used for working capital, capital expenditures, acquisitions and other purposes.

The company terminated its revolver from Sept. 11, 2019 concurrently with signing the new facility.

The digital payments company is based in San Jose, Calif.

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