EBay draws $1 billion from revolving credit facility

The Internet auctioneer still has approximately $840 million available under the facility.

In the midst of the corporate credit crunch, more companies are now turning to their revolving credit facilities, which are usually kept for emergencies, in order to conserve their own cash.

General Motors Corp , First Data Corp, AMR Corp and Goodyear Tire & Rubber Co are among a number of companies that have tapped their credit lines recently, as credit markets have been largely frozen. In some cases, there are fears that if they waited the capital may no longer be available.

EBAY (EBAY.NQ)did not immediately return a message asking why it chose to dip into its credit facility, rather than raising new debt funding.

Last week, eBay announced it would pay about $924 million for U.S.-based Bill Me Later, which offers consumers deferred payments and financing promotions. The deal is expected to close sometime in the current quarter.

EBay is also buying two Danish classifieds businesses for about $390 million.

Earlier this week, the company cut its full-year earnings and revenue outlook, citing the weak consumer environment, the strengthening U.S. dollar and the new acquisitions.

(Reporting by Alexandria Sage; Editing by Gary Hill and Gunna Dickson)

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