PayPal: KKR To Purchase Up To EUR 40 Bln Of BNPL Loan Receivables Originated In Europe

(RTTNews) - PayPal Holdings, Inc. (PYPL) and KKR announced the signing of a multi-year agreement for a 3 billion euros replenishing loan commitment under which private credit funds and accounts managed by KKR will purchase up to 40 billion euros of buy now, pay later loan receivables originated by PayPal in France, Germany, Italy, Spain, and the United Kingdom.

KKR's private credit funds and accounts will acquire substantially all the European BNPL loan portfolio held on PayPal's balance sheet and will also acquire future originations of eligible BNPL loans.

PayPal expects the deal to initially generate approximately $1.8 billion of proceeds to be used for a combination of increased capital return to shareholders and general corporate purposes. Following closing, the company expects to allocate approximately $1 billion to incremental share repurchases in 2023, contributing to an updated outlook of approximately $5 billion in total share repurchases in the current year.