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EBay Skirts Repatriation with Bond

Debt sale allows company to avoid tax on overseas earnings brought back to U.S.

By Charles Mead and Danielle Kucera, Bloomberg | Updated on July 23, 2012

EBay Inc. is taking advantage of record low interest rates to raise domestic funds it may use to reward shareholders while avoiding U.S. repatriation tax on the 87 percent of its cash held overseas.

The Internet marketplace, whose borrowing costs are about half that of other technology and electronic firms, paid a rate that’s less than 90 percent of all investment-grade issues this year with a four-part offering on July 19, according to data compiled by Bloomberg. The San Jose, California-based company had $8 billion of cash on June 30, about $7 billion of which was outside the U.S.

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