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 Registrant

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 Registrant
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On September 26, 2017, PayPal Holdings, Inc. (the “Company”) drew down $800 million under its revolving credit facility (the “Facility”) to the Company’s previously disclosed Credit and Guarantee Agreement, a copy of which is attached as Exhibit 10.6 to the Company’s Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 20, 2015. The borrowing under the Facility bears interest at a rate equal to one-month LIBOR plus a margin of 1.125% (2.36% as of September 26, 2017). The Company expects that the funds will be used for general corporate purposes including, among other things, for purposes related to the acquisition of Swift Financial Corporation by PayPal, Inc., which closed on September 19, 2017, for stock repurchases, and for working capital. Following the drawdown, the remaining availability under the Facility is approximately $1.2 billion.
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Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On September 27, 2017, the Company announced that Rodney C. Adkins had been appointed as a new member of the Company’s Board of Directors (the “Board”) and a member of the Audit, Risk and Compliance Committee of the Board, effective September 26, 2017. Mr. Adkins fills a vacancy created by an increase in the size of the Board from ten to eleven, and his term of office will expire at the Company’s 2018 annual meeting of stockholders or until his successor has been elected and qualified. As a non-employee director, Mr. Adkins will be entitled to receive compensation in accordance with the Company’s Independent Director Compensation Policy, a copy of which is attached as Exhibit 10.1 to the Company’s Form 8-K filed with the SEC on June 28, 2017.

There is no arrangement or understanding between Mr. Adkins and any other persons to which Mr. Adkins was appointed as a director. Furthermore, there are no transactions between Mr. Adkins and the Company that would be required to be reported under Item 404(a) of Regulation S-K.


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.

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