Facebook secures $8 bn ahead of public offer

Mar 08, 2012
A sign with the "like" symbol stands in front of the Facebook headquarters on February 1, 2012 in Menlo Park, California. Facebook has secured $8 billion ahead of the social network's eagerly-anticipated initial public offering (IPO), according to documents provided to US regulators.

Facebook has secured $8 billion ahead of the social network's eagerly-anticipated initial public offering (IPO), according to documents provided to US regulators.

The company said it had secured a $5 billion revolving line of credit over three years from a bank consortium including Morgan Stanley, JP Morgan, and Bank of America-Merrill Lynch, according to documents filed Wednesday with the (SEC).

said it would use the facility "for general corporate purposes."

The company also said it had reached a deal with the same group for a $3 billion bridge loan to enable it to fulfill a number of obligations related to the (IPO).

In early February Facebook filed to go public, aiming to raise at least $5 billion in the largest stock flotation ever by an Internet company. Depending on investor interest, that figure could grow to $10 billion.

The Palo Alto, California-based company, founded by Mark Zuckerberg eight years ago when he was just 19, reported net income of $668 million last year, up from $372 million the previous year.

In the documents filed Wednesday, Facebook also said it had added 25 new underwriters to the existing six ahead of its IPO, expected later this year.

Facebook's value has been estimated at $75 billion to $100 billion.

Explore further: Two more former Sony workers sue over data breach

add to favorites email to friend print save as pdf

Related Stories

Facebook 2012 IPO could top $100 billion: CNBC

Jun 13, 2011

Social network Facebook is likely to go public in the first quarter of next year with a valuation of over $100 billion, the CNBC business news network reported on Monday.

LinkedIn looking for $32 to $35 per share in IPO

May 09, 2011

(AP) -- Professional networking website LinkedIn Corp. hopes to sell its stock for $32 to $35 per share in an upcoming initial public offering. Its IPO may encourage other growing Internet services to make ...

SEC rule likely to trigger Facebook IPO in 2012

Jan 07, 2011

(AP) -- With so many investors becoming fans of the company, Facebook will be legally required to begin sharing more information about its finances and strategy by April 2012, according to documents distributed ...

Recommended for you

Clooney slams skittish Hollywood after Sony hack

4 hours ago

Film star George Clooney slammed the Hollywood movie industry for failing to stand up against the cyber threats that prompted Sony Pictures to cancel release of the movie "The Interview."

Atos shares soar after Xerox acquisition

7 hours ago

Shares in French tech firm Atos soared nearly five percent on Friday as traders cheered the news it had bought the IT wing of Xerox for more than $1 billion.

Two more former Sony workers sue over data breach

23 hours ago

Two more former employees of Sony Pictures Entertainment are suing the company over the massive data breach in which their personal and financial information was stolen and posted online.

Constantly changing online prices stump shoppers

Dec 18, 2014

Online shopping has become as volatile as stock market trading. Wild, minute-by-minute price swings on everything from clothes to TVs have made it difficult for holiday shoppers to "buy low."

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

rwinners
5 / 5 (1) Mar 09, 2012
Hmm.. Facebook needs a loan to bring it's financial condition up to spec for the IPO? One does wonder.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.