PayPal Holdings, Inc. issued $2 billion in senior notes to increase financial flexibility.
The first tranche consists of $650 million in notes maturing in 2028. These notes carry an interest rate of 4.550%.
The second tranche includes $850 million in notes due in 2031. This portion carries a 4.950% interest rate.
The final $500 million tranche matures in 2036. These notes carry a 5.550% interest rate.
The notes rank equally with PayPal's existing unsecured and unsubordinated debt. Covenants restrict the company from creating liens or engaging in sale and leaseback transactions.
PayPal must offer to repurchase the notes at 101% of the principal if a change of control triggers a credit rating downgrade below investment grade.