Shares of online retailer eBay are benefiting from the company’s decision to raise $3.5 billion through a debt offering. The stock was up 1 percent in Thursday afternoon trades.
The company said the public offering of senior unsecured notes, which closes Monday, is intended to repay loans and general operating expenses, though the infusion of cash might also make room for acquisitions.
The bond sale follows the company’s second-quarter earnings report, which only narrowly beat estimates. eBay’s business suffered as a result of a wide-reaching security breach, but growth from its PayPal payments division helped the company report solid numbers.
Shares are up more than 4 percent since the Q2 report as traders remain optimistic, with some holding on to hopes that the e-commerce company will spin off PayPal. The positivity comes even after firms including Jefferies, Benchmark, and RBC Capital cut their 12-month price targets.