eBay 2015 Annual Report Download - page 107

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
As of December 31, 2015, no borrowings were outstanding under our $2 billion credit agreement. However,
as described above, we have an up to $1.5 billion commercial paper program and therefore maintain $1.5 billion
of available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the
event we are unable to repay those borrowings from other sources when they become due. As a result, at
December 31, 2015, $500 million of borrowing capacity was available for other purposes permitted by the credit
agreement.
Loans under the credit agreement bear interest at either (i) the London Interbank Offered Rate (“LIBOR”)
plus a margin (based on our public debt credit ratings) ranging from 0.875 percent to 1.5 percent or (ii) a formula
based on the agent bank’s prime rate, the federal funds effective rate plus 0.5 percent or LIBOR plus 1.0 percent,
plus a margin (based on our public debt credit ratings) ranging from 0.0 percent to 0.5 percent. The credit
agreement will terminate and all amounts owing thereunder will be due and payable on November 9, 2020,
unless (a) the commitments are terminated earlier, either at our request or, if an event of default occurs, by the
lenders (or automatically in the case of certain bankruptcy-related events of default), or (b) the maturity date is
extended upon our request, subject to the agreement of the lenders. The credit agreement contains customary
representations, warranties, affirmative and negative covenants, including financial covenants, events of default
and indemnification provisions in favor of the banks. The negative covenants include restrictions regarding the
incurrence of liens and subsidiary indebtedness, in each case, subject to certain exceptions. The financial
covenants require us to meet a quarterly financial test with respect to a minimum consolidated interest coverage
ratio and a maximum consolidated leverage ratio.
We were in compliance with all covenants in our outstanding debt instruments for the period ended
December 31, 2015.
Future Maturities
Expected future principal maturities as of December 31, 2015 are as follows (in millions):
Fiscal Years:
2016 $—
2017 1,450
2018 —
2019 1,550
2020 500
Thereafter 3,250
$6,750
Note 12 — Related Party Transactions
We have entered into indemnification agreements with each of our directors, executive officers and certain
other officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by
Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us.
All contracts with related parties are at rates and terms that we believe are comparable with those that could
be entered into with independent third parties. There were no material related party transactions in 2015. As of
December 31, 2015, there were no material amounts payable to or amounts receivable from related parties.
F-33