PayPal Holdings, Inc. (PYPL): debt financing — PayPal signs €40B BNPL receivables sale with KKR; boosts 2023 buyback to $5B

PayPal Holdings, Inc.

KKR-affiliated funds will purchase up to €40 billion of eligible European BNPL loans from PayPal.
PayPal expects initial proceeds of ~$1.8 billion at close, allocated to share repurchases and corporate purposes.
PayPal raises 2023 share repurchase outlook to ~$5 billion, with ~$1 billion incremental from this deal.
Transaction expected to close H2 2023; PayPal retains customer-facing underwriting and servicing roles.
The deal is already contemplated in PayPal's full-year GAAP and non-GAAP EPS and margin guidance.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

PayPal Holdings, Inc. entered an off-balance-sheet arrangement for loan of up to EUR 40 billion with Alps Partners S.à r.l. maturing 24-month commitment period.

Instrument: loan
Principal: up to EUR 40 billion
Counterparty: Alps Partners S.à r.l.
Maturity: 24-month commitment period
Event: off balance sheet

Exact text from the filing

Services limited (as Security Agent), Avega S.à r.l. (as Back-Up Receivables Manager Facilitator) and Alps Partners (Holding) S.à r.l. (as Class C Lender) to sell up to EUR 40 billion of UK and European buy now, pay later (BNPL) loan receivables originated by the Seller. The Receivables Purchase Agreement consists of the sale of a substantial majority of the

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

PayPal Holdings, Inc. entered into Receivables Purchase Agreement with Alps Partners S.à r.l. valued at EUR 40 billion (effective 2023-06-16).

Action: entry
Counterparty: Alps Partners S.à r.l.
Value: EUR 40 billion
Effective: 2023-06-16

Exact text from the filing

On June 16, 2023, PayPal (Europe) S.à r.l. et Cie, SCA (as Seller and Receivables Manager) entered into a Receivables Purchase Agreement with Alps Partners S.à r.l. (as Purchaser), BNY Mellon Corporate Trustee Services limited (as Security Agent), Avega S.à r.l. (as Back-Up Receivables Manager Facilitator) and Alps Partners (Holding) S.à r.l. (as Class C Lender) to sell up to EUR 40 billion of UK and European buy now, pay later (BNPL) loan receivables originated by the Seller.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

PayPal Holdings, Inc. entered into Receivables Management Agreement with Alps Partners S.à r.l. (effective 2023-06-16).

Action: entry
Counterparty: Alps Partners S.à r.l.
Effective: 2023-06-16

Exact text from the filing

In addition, on June 16, 2023, PayPal (Europe) S.à r.l. et Cie, SCA (as Seller and Receivables Manager) entered into a Receivables Management Agreement with Alps Partners S.à r.l. (as Purchaser), Avega S.à r.l. (as Back-Up Receivables Manager Facilitator) and Alps Partners (Holding) S.à r.l. (as Class C Lender) pursuant to which the Receivables Manager is obligated to service the UK and European BNPL receivables portfolio purchased by the Purchaser under the Receivables Purchase Agreement consistent with certain policies and procedures.

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102 debt financings filed in the last 30 days. Browse all debt financings →

PayPal Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001193125-23-172688

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