Forum Views ()
Forum Replies ()
Read more with google mobile :
- eBay sells $1.5 billion of debt in debut deal
|
Edition:
U.S.
Article
Comments (0)
Email
Print
Reprints
Read
Strong quake hits off Mexico's Baja California
21 Oct 2010
Special report: Conservative donors let Christine O'Donnell sink
21 Oct 2010
Netflix website down
21 Oct 2010
Massive healthcare fraud scheme uncovered in Miami
21 Oct 2010
Low-dose aspirin lowers colon cancer risk: UK study
21 Oct 2010
Discussed
62
WRAPUP 1-Two Fed officials favor aggressive easing options
60
Jobs blasts rivals as iPad sales disappoint
51
Merkel says German multiculturalism has failed
Watched
Ancient tomb discovered in Egypt
Wed, Oct 20 2010
Mexico's 20-yr old police chief
Thu, Oct 21 2010
Russian spy poses for Maxim
Tue, Oct 19 2010
Report Title
Price
ValuEngine Industry Report for BEVERAGES
Provider: ValuEngine, Inc.
$49.0
Buy
Trading Report for (PEP). A detailed report, including free correlated market analysis, and updates.
Provider: Stock Traders Daily
$18.0
Buy
PEP: Risk/Reward Rating: Full Report: Cash Truth Behind the Reported Earnings
Provider: New Constructs, LLC
$10.0
Buy
PEPSICO INC (PEP=US) - REPORT FOR ACTIVE TRADERS
Provider: Pechala's Reports
$25.0
Buy
Food Industry Market Research and Competitive Analysis 2010
Provider: Plunkett Research, Ltd.
$299.0
Buy
NYSE and AMEX quotes delayed by at least 20 minutes. NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
PopTech
Live coverage: PopTech 2010
The PopTech 2010 conference features a vast network of visionary thinkers coming together for a three-day conversation about the "nature of creative change." Join our live coverage from the conference in Camden, Maine from October 21-23. Live Coverage
Welcome to PopTech
The future of microfinance?
Does our economy make us happy?
eBay sells $1.5 billion of debt in debut deal
Tweet This
Share on LinkedIn
Share on Facebook
Related News
Shares edge up, whipsawed by dollar, earnings
Thu, Oct 21 2010
eBay sells $1.5 bln of debt in debut deal
Thu, Oct 21 2010
EBay beats and raises, sees improved holiday
Thu, Oct 21 2010
Analysis: Two years on, credit rallies, and it's no bubble
Thu, Oct 14 2010
TREASURIES-Bonds rise as hedges unwind, Fed reinvests more
Wed, Oct 13 2010
Analysis & Opinion
Regulators face battle to create market for CoCos
Thailand heads in wrong direction with bond tax -IFR
Related Topics
Technology »
Media »
Stocks
By Andrea Johnson
NEW YORK |
Thu Oct 21, 2010 5:43pm EDT
NEW YORK (Reuters) - EBay Inc on Thursday joined an elite group of borrowers to issue debt at record low rates, suggesting demand for corporate debt remained high.
The Internet commerce company, which on Wednesday posted better-then-expected quarterly profit and forecast stronger holiday earnings, issued its first-ever bonds, selling $1.5 billion of debt in a three-part sale.
The sale included $400 million of three-year notes that priced at a coupon of 0.875 percent, according to IFR, a Thomson Reuters service.
Wal-Mart Stores Inc earlier this week sold three-year notes with a record low coupon of 0.75 percent.
EBay's issue tied for second-lowest coupon with recent issues by Microsoft Corp and PepsiCo Inc, which also carried coupons of 0.875 percent.
Debt issuers are selling bonds as demand for corporate and other debt continues, helped by massive flows into bond funds.
"There's huge demand for spread product, everyone's looking for yield, " said Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management in Grand Rapids, Michigan.
"If you even have an inclination of wanting to put debt on your balance sheet, or refinance, now's definitely the time to do it. It's at historic lows."
Few technology companies need to borrow money in the fixed income market as many generate a lot of cash, he said. Microsoft, for example, has a cash pile of about $37 billion, although much of that is overseas and may be subject to tax if repatriated.
"The Fed is on hold in terms of rates at least till the second half of next year, so its going to be a great time to issue if you need to come to market," said Mikelic. "Even if the need may not be immediately there. It's amazing."
EBay Chief Financial Officer Bob Swan made reference to capitalizing on historically low U.S. interest rates in the company's earnings call.
"While we had a strong balance sheet, we only had $915 million in the U.S. at the end of the third quarter. As such, we've announced a series of steps that we believe will enable us to leverage our strong offshore cash position more effectively and maintain the flexibility to capitalize on M&A opportunities in both the U.S. and abroad, while redistributing excess cash to shareholders," he said.
As part of that plan, eBay's board approved the creation of a commercial paper program of up to $1 billion to fund a portion of "Bill Me Later" receivables. The board also approved the issuance of up to $1.5 billion in term debt financing.
The second tranche of Thursday's deal, $600 million of 5-year notes, priced at a coupon of 1.625 percent. That places it in the top two of the Thomson Reuters Data/IFR Historical Low Coupon Tables.
Wal-Mart's recent 5-year sale achieved a record coupon of 1.50 percent. EBay's sale is tied with a 5-year sale by Microsoft.
EBay also sold $500 million of 10-year notes at a coupon of 3.25 percent. Johnson & Johnson tops the 10-year table with a 2.95 percent coupon, followed by Microsoft at 3.00 percent, Raytheon at 3.125 percent, PepsiCo at 3.125 percent and Raytheon at 1.625 percent.
(Additional reporting by Christopher Reich, Karen Brettell and Ciara Linnane; Editing by Padraic Cassidy)
Technology
Media
Add a Comment
*We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
© Copyright 2010 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Analyst Research
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Reuters on Facebook
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Friday, 22 October 2010 Sex, lies and pomegranate juice focus of US legal battle
Bolivian silver mountain risks collapse
"Paranormal 2" sequel set to rattle box office
Egypt's Mubarak to seek another term: official
Chavez and Ahmadinejad say united to change world order
French unions step up pressure on Sarkozy with demo call
Question a Nobel laureate on YouTube, Facebook
Tigers could be extinct within 12 years: WWF
Afghan peace council wants Saudi Arabia's help
Italian government calls emergency talks amid Naples riots
Putin should not run in 2012 vote: Medvedev aide
|
Google to bring ultra high-speed broadband to Stanford
Afghanistan: Troops chasing Taliban from Kandahar
Nokia reports stellar profits, signals job cuts
Nokia reports stellar profits, job cuts
Far East Movement Earns First #1 Billboard Hot 100 Single With "Like A G6"
Top Putin aide confirmed as Moscow mayor
Lil Wayne Climbs To #1, Darius Rucker Debuts At #2 On Billboard Albums Chart
eBay net earnings climb with success of PayPal
Canadian air force colonel jailed for sex murders
|
Study Finds Violent TV, Movies And Video Games Desensitize Teens
Former Actress Brigitte Bardot Says She May Run For French Presidency
Fearing new freeze, West Bank settlers rush to build
|
Bruno Mars Spends Fourth Week At #1 On Billboard Hot 100 With "Just The Way You Are"
Italian regulator accuses media of Berlusconi bias
|
Christina Aguilera Files For Divorce From Jordan Bratman
Nokia reports stellar profits, job cuts
Toby Keith Debuts At #1 On Billboard Albums Chart With "Bullets In The Gun"
Strong quake hits off Mexico's Baja California
|
Guinness Team In Nepal To Award Worlds Shortest Man
Oprah Disappointed After School Worker Is Acquitted Of Molestation
Former CNN Anchor Rick Sanchez Tells Good Morning America He Screwed Up
Barnes & Noble takes Nook eReader to Walmart
|
Roxy Music's Bryan Ferry to release comeback album
Sony sells 1 million Move units in Americas
|
Amazon, Facebook, Zynga team up on social media fund
|
Tropical Storm Richard Forms in Caribbean
Brand, Perry to wed near Indian tiger sanctuary
Commerce Department Revises Q2 GDP Growth Upward To 1.7%
Sex.com domain name sold for $13 million
|
Financial Experts Say Corporate Executives Should Assume Personal Risks
Russell Brand, Katy Perry to wed in Jaipur
Christina Aguilera To Perform On "American Music Awards"
Major Earthquake Shakes Mexicos Pacific Coast
Electrical products makers gain from industrial rebound
|
Kelly Ripa And Mark Consuelos Team Up For ABC Comedy
Xerox profit beats estimates; raises outlook
|
Rescuers Search For Missing Hikers In California
Sony expects TV price falls by year-end
|
AAA Study Finds Both Parents, Teens Engage In Distracted Driving Habits
The Black Eyed Peas To Release New Album "The Beginning," First Single "The Time (The Dirty Bit)"
Fed Beige Book Survey Finds Modest Economic Activity
Beyonce's mother says daughter is not pregnant
|
Tom Hanks, Jon Hamm among Conan's first TV guests
|
The King's Speech gets lower UK film rating
|
Cuba authorizes release of five extra dissidents
- Tokyo urges Japan and China to avoid tit-for-tat claims
|
Italy calls emergency talks as riots erupt in Naples
- Police clear refinery but French unions remain defiant
|
Moon's 'treasure chest' includes silver
- Cargo ship and Dutch passenger ferry collide in canal
|
Madoff sale to run gamut from diamonds to slippers
Low-dose aspirin slashes colon cancer risk
- Activists say Sudan arrested Darfuris after U.N. trip
|
Canadian colonel gets life for sex attacks, murders
California braces for the Big One with fake quake
- Rousseff extends lead as Brazil runoff vote nears
|
Major Northern Calif. mall burns after standoff
- U.N. envoy defends Falun Gong, evil cult for China
|
Texas National Guard member killed by Mexican gunmen
- Firms halting Afghan projects over security ban
|
Cambodian ex-monk gets 17 years for filming girls
- Hungary, rail firms sued in U.S. over Holocaust role
|
North Korea heads for new food crisis: UN
China activists plan whistleblower site to spur reform
Bomb attack kills six Pakistani soldiers
Deadly Typhoon Megi heads for China
Nissan starts production of zero-emission Leaf car
Tibet language protests spread in China: rights group
Death toll in Philippine bus bombing rises to 10
Wipro posts 9.7 percent profit rise, below forecast
Hong Kong kicks off film fest with China focus
India's new rich fuel demand for high-rise luxury
- HP unveils $799 tablet with a PC feel
|
Martin Freeman to play lead role in 'The Hobbit'
20 missing as typhoon pounds Taiwan
- Google in talks to unblock access to TV websites
|
One week after rescue, Chile miners fed up with fame
Bank of China chief urges push overseas
- Canada project aims to track BlackBerry traffic
|
Security row threatens Afghan reconstruction: report
iPhone subway performance goes viral on YouTube
Hyundai taps into China market
Khadr film provokes outrage, calls for his repatriation
Israel vanquishes Iran... on the chess board
- China unveils its own version of Google Earth
|
Japan and Vietnam to jointly develop rare earth
- Obama meets with Apple CEO Jobs
|
Rio's Christ statue comes to life against child sex abuse
G20 ministers to grapple with currency dispute
- Netflix website back up
|
British channel to defy Harry Afghan kidnap drama outrage
Sony reports hot demand for PlayStation 3 motion
Bollywood looks for Diwali success
- SanDisk beats Street view after prices steady
|
Japan plans to mine rare earth metals in Vietnam
Lively debate after Russian Avdeeva's Chopin victory
- eBay sells $1.5 billion of debt in debut deal
|
Currencies center stage as G20 gets underway
- Mel Gibson dropped from Hangover sequel
|
- New Zealand could face $1.5 billion fallout if loses Hobbit
|
Amazon quarterly net profit up 16 percent
- U2 working With Danger Mouse on new album
|
- The Cars reunite for first album in 23 years
|
Obama to meet Apple supremo Steve Jobs
- Hirsute Robin Williams plays tiger in Broadway bow
|
Facebook voyeurism a part of workplace life: report
- Rapper sued for not playing at jail release party
|
Starbucks adds double-shot of Internet to cafe life
Facebook, Amazon and Zynga backing social Internet ideas
UK autopsy confirms suicide of Iraq weapon inspector
British nuclear submarine runs aground
Taliban hit NATO convoy in Afghanistan, killing 3
China launches own version of Google Earth
- Quake-hit Haiti battles cholera epidemic, 138 dead
|
Shock u-turn as Rooney signs new deal with United
Ericsson reveals profit jump
- Iraq weapons inspector's death was suicide: UK files
|
Diplomat: Quiet negotiations helped obtain release
Ship, ferry collide on Dutch canal
- Priest extradited from U.S. jailed for UK sex abuse
|
French police break refinery blockade
- U.S. seeks $2 billion in military aid for Pakistan
|
- Russia seeks 6 extra years in jail for tycoon
|
- Dutch court to hear Wilders case over again
|
- Afghan insurgents dismiss peace talks, NATO upbeat
|
Currency skirmishes as US pushes plan at G20
Indonesia admits troops in Papua torture video
Feminism, war and silence fuel domestic abuse in Finland
India slaps Vodafone with $2.53 bln tax demand
US eyes new support for Pakistan
Martin Freeman to play Hobbit's Bilbo Baggins
Germany's Daimler to invest 3 bln euros in China
Manga 'pop opera' prepares to take Europe by storm
Post-Cannes blues for prize-winning Romanian director
Mitsubishi revises up first-half earnings
- News Corp ices Alesia digital newsstand plan: source
|
For many, gamble lost in once-booming Las Vegas
Chinese smelter found leaking thallium into river
China's Baidu doubles profits in third quarter
Russia to keep gas imports from Turkmenistan flat
Currencies center stage as G20 gets under way
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights