eBay 2015 Annual Report Download - page 62

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be issued. The registration statement does not limit the amount of securities that may be issued thereunder. Our
ability to issue securities is subject to market conditions and other factors including, in the case of our debt
securities, our credit ratings and compliance with the covenants in our credit agreement.
We previously issued senior notes in underwritten public offerings under prior registration statements. The
senior notes that remained outstanding as of December 31, 2015 consisted of $450 million aggregate principal
amount of floating rate notes due 2017, $1.0 billion aggregate principal amount of 1.35% fixed rate notes due
2017, $400 million aggregate principal amount of floating rate notes due 2019, $1.15 billion aggregate principal
amount of 2.2% fixed rate notes due 2019, $500 million aggregate principal amount of 3.250% fixed rate notes
due 2020, $1.0 billion aggregate principal amount of 2.60% fixed rate notes due 2022, $750 million aggregate
principal amount of 2.875% fixed rate notes due 2021, $750 million aggregate principal amount of 3.45% fixed
rate notes due 2024 and $750 million aggregate principal amount of 4.00% fixed rate notes due 2042. The net
proceeds from the sale of these senior notes were used for general corporate purposes, including, among other
things, the repayment of outstanding commercial paper borrowings.
During the year ended December 31, 2015, $250 million aggregate principal amount of 0.700% fixed rate
notes due 2015 and $600 million aggregate principal amount of 1.625% fixed rate notes due 2015 matured and
were repaid during the year.
To help achieve our interest rate risk management objectives, we previously entered into interest rate swap
agreements that effectively converted $2.4 billion of the fixed rate notes to floating rate debt based on the
London InterBank Offered Rate (LIBOR) plus a spread. These swaps were designated as fair value hedges
against changes in the fair value of certain fixed rate senior notes resulting from changes in interest rates.
The indenture pursuant to which the senior notes were issued includes customary covenants that, among
other things and subject to exceptions, limit our ability to incur, assume or guarantee debt secured by liens on
specified assets or enter into sale and lease-back transactions with respect to specified properties, and also
includes customary events of default.
Commercial Paper
In connection with entering into the credit agreement described below, in November 2015, the Company
reduced the aggregate principal amount at maturity of commercial paper notes which may be outstanding under
its commercial paper program at any time from $2.0 billion to $1.5 billion to correspond with the $1.5 billion of
available borrowing capacity it maintains under the credit agreement for the repayment of commercial paper
borrowings in the event it is unable to repay those borrowings from other sources when they become due. We
have a $1.5 billion commercial paper program pursuant to which we may issue commercial paper notes with
maturities of up to 397 days from the date of issue in an aggregate principal amount of up to $1.5 billion at any
time outstanding. As of December 31, 2015, there were no commercial paper notes outstanding.
Credit Agreement
In November 2015, we entered into a credit agreement that provides for an unsecured $2 billion five-year
revolving credit facility. We may also, subject to the agreement of the applicable lenders, increase the
commitments under the revolving credit facility by up to an aggregate amount of $1 billion. Funds borrowed
under the credit agreement may be used for working capital, capital expenditures, acquisitions and other general
corporate purposes. The credit agreement replaced our prior $3.0 billion unsecured revolving credit agreement,
entered into in November 2011.
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
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