PayPal Sells Synchrony $6.8 Billion Portfolio to Gain Cash

Nov. 17, 2017, 4:35 PM UTC

PayPal Holdings Inc. agreed to sell $6.8 billion in loans and receivables to Synchrony Financial as the payments technology company seeks to use that capital to pursue more profitable businesses.

PayPal sold the portfolio -- which includes $5.8 billion in loans and about $1 billion in receivables that other lenders originated -- at face value, Chief Financial Officer John Rainey said Nov. 16 on a conference call with analysts. Synchrony will also continue as the exclusive issuer of PayPal’s online consumer-financing program for 10 years, the two companies said in a statement.

“Our expanded relationship with Synchrony Financial will free ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.