PayPal Holdings, Inc. (NASDAQ:PYPL) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On December 22, 2017, PayPal Holdings, Inc. (the “Company”) drew down $1.0 billion under its 364-day delayed-draw term loan credit facility (the “Facility”), which is governed by the Company’s previously disclosed 364-Day Credit and Guarantee Agreement, a copy of which is attached as Exhibit 10.1 to the Company’s Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 6, 2017. The borrowing under the Facility bears interest at a rate equal to 3-month LIBOR plus a margin of 1.125% (2.78% as of December 22, 2017). The Company expects that the funds will be used for capital allocation and other general corporate purposes of the Company and its subsidiaries. Following the drawdown, the remaining availability under the Facility is $2.0 billion.
About PayPal Holdings, Inc. (NASDAQ:PYPL)
PayPal Holdings, Inc. (PayPal) is a technology platform company that enables digital and mobile payments on behalf of consumers and merchants across the world. The Company allows businesses of all sizes to accept payments from merchant Websites, mobile devices and applications, and at offline retail locations through a range of payment solutions. Its combined payment solution capabilities, including its PayPal, PayPal Credit, Braintree, Venmo and Xoom products, comprise its Payments Platform. It allows its customers to use their account to both purchase and be paid for goods, as well as transfer and withdraw funds. A consumer can typically fund a purchase using a bank account, a PayPal account balance, a PayPal Credit account, a credit or debit card or other stored value products, such as coupons and gift cards. The PayPal, Venmo, and Xoom products allow friends and family to transfer funds to each other, including cross border transfers using several of these funding sources.