(Bloomberg) — PayPal Holdings Inc. is kicking off its debut bond offering as the investment-grade market reignites.The digital payments company is selling senior unsecured bonds in as many as five parts, according to a person with knowledge of the matter. The longest portion of the offering, a 10-year security, may yield around 1.15 percentage points above Treasuries, after initially discussing between 1.3 percentage points and 1.35 percentage points, said the person, who asked not to be identified as the details are private.Amid a Federal Reserve meeting Wednesday, investment-grade borrowers stood down for the first time this month, halting what’s been a blistering pace of issuance. Activity is now picking up speed, with PayPal and five other high-grade borrowers tapping the market Thursday. Investors had put in orders for more than $20 billion of Paypal bonds at noon in New York, according to people familiar with the demand. The company has about $3 billion of debt outstanding between loans and other credit facilities, which the bond offering — the company’s first — will help refinance. The remainder of the proceeds will be used for general corporate purposes, which could include other refinancings, share repurchases and possible acquisitions, among other uses, according to a statement Thursday.“Given the strong secular trends and credit metrics, we expect there to be demand for this defensive credit, and that the pricing will tighten,” from initial talk, CreditSights analyst Jordan Chalfin said in a report.Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are managing the bond sale, per the statement.(Updates prices in second paragraph, adds quote in penultimate paragraph.)\–With assistance from Michael Gambale and Brian Smith.To contact the reporter on this story: Molly Smith in New York at msmith604@bloomberg.netTo contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net, Dawn McCartyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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