PayPal Holdings Inc.'s Proposed $3 Billion Senior Unsecured Bonds Rated 'A-'

COLUMBIA (S&P Global Ratings) May 16, 2022--S&P Global Ratings today assigned its 'A-' rating to PayPal Holdings Inc.'s proposed offering of $3 billion senior unsecured bonds. We expect the company to use the proceeds to refinance $2 billion of senior notes coming due in 2022 and 2023 and for general corporate purposes. As such, the transaction is leverage neutral, in our view. Despite pro forma gross debt of $12 billion at the end of March 2022, we view leverage (S&P Global Ratings adjusted debt to EBITDA of 0.7x) as very low and a key rating strength, thanks to a very strong cash position. We net unrestricted cash from reported gross debt in calculating adjusted leverage. In the first quarter of

...May 16, 2022 COLUMBIA (S&P Global Ratings) May 16, 2022--S&P Global Ratings today assigned its 'A-' rating to PayPal Holdings Inc.'s proposed offering of $3 billion senior unsecured bonds. We expect the company to use the proceeds to refinance $2 billion of senior notes coming due in 2022 and 2023 and for general corporate purposes. As such, the transaction is leverage neutral, in our view. Despite pro forma gross debt of $12 billion at the end of March 2022, we view leverage (S&P Global Ratings adjusted debt to EBITDA of 0.7x) as very low and a key rating strength, thanks to a very strong cash position. We net unrestricted cash from reported gross debt in calculating adjusted leverage. In the first quarter of 2022, the company reported 7% year-over-year growth in revenues (including eBay), substantially lower than in recent years, notably because of: - A higher-than-expected impact from the loss of exclusivity on eBay payments; - Lower-than-expected e-commerce transaction volumes (mostly...

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