Bonds of EBay Inc. (EBAY:US) rose after the world’s largest Internet marketplace sold $3 billion of debt in its first offering since 2010.
The company’s $1 billion of 2.6 percent, 10-year bonds, one piece of yesterday’s four-part offering, climbed 1 cent from the issue price to 100.9 cents on the dollar at 10:15 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The yield fell to 2.5 percent, or 103.3 basis points more than similar-maturity Treasuries. That compares with 110 basis points more at the issue price of 99.869 cents on the dollar.
Ebay’s $250 million of 0.7 percent notes due 2015, its $1 billion of 1.35 percent debentures maturing in 2017 and its $750 million of 30-year, 4 percent bonds also rose after their sale yesterday. The 2042 notes gained 1.6 cents from the issue price to 100.6 cents on the dollar, yielding 3.96 percent, or 142.1 basis points more than Treasuries.
EBay borrowed money as average yields on investment-grade U.S. debt fell to a record 3.09 percent yesterday, according to Bank of America Merrill Lynch index data. Moody’s Investors Service rated the San Jose, California-based company’s bonds A2, the sixth level of investment grade, and Standard & Poor’s graded the obligations an equivalent A.
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