KKR to Purchase $44 Billion in PayPal Loans Enabling $1 Billion in Stock Buybacks

PayPal announced a deal with KKR-managed funds to purchase up to €40 billion of buy now, pay later loan receivables originated in Europe.
The deal is expected to generate about $1.8 billion in gross proceeds and close in the second half of the year.
PayPal expects to allocate roughly $1 billion to incremental share repurchases in 2023 after the deal closes.
Private credit funds and accounts managed by KKR will purchase loan receivables originated by PayPal in France, Germany, Italy, Spain and the United Kingdom.
PayPal will continue to remain responsible for all customer-facing activities, including underwriting and servicing associated with its European BNPL products.