eBay Inc. Sells a New Baby Bond Issue
By: Tim McPartland,
Online e-commerce platform company eBay (NASDAQ:EBAY) has sold a baby bond issue ($25 exchange traded debt issue).
In recent years it has been very unusual for companies such as eBay to sell this type of security and we are not aware of the logic behind this very large offering ($750,000,000), but it is assumed that the coupon (6%) on this investment rated issue coupled with the longer duration offered the company the best overall terms.
This issue has the normal five-year optional redemption period that will allow the company to call in the bonds at the option of management as early as March 1, 2021.
The newly issued baby bonds have a maturity date of March 1, 2056, and the shares will trade on the NASDAQ under the ticker EBAY. Trading should commence in the next week.
eBay has no other preferred stock or baby bonds outstanding upon which to compare the fairness of the new issue, but you can compare the coupon with that of other investment grade baby bonds and preferred stocks here.