Summary by Moomoo AI
On May 28, 2024, PayPal Holdings, Inc. completed a significant financial transaction by issuing $1.25 billion in senior notes. The offering included two sets of notes: $850 million of 5.150% notes due in 2034 and $400 million of 5.500% notes due in 2054. These notes were issued under an indenture agreement with Computershare Trust Company, N.A., which was established on September 26, 2019. The notes are unsecured senior obligations and rank equally with PayPal's other unsecured and unsubordinated debt. They are structurally subordinated to the liabilities of PayPal's subsidiaries and effectively subordinated to any secured debt. PayPal has the option to redeem the notes at any time, in whole or in part, with specific terms for redemption prices and make-whole premiums. The indenture also contains covenants limiting PayPal's ability to create liens and enter into certain transactions, as well as provisions for mandatory repurchase in the event of a change of control accompanied by a downgrade in credit rating. The first interest payment is scheduled for December 1, 2024.
