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: GoDaddy revs up tech sector with Wall Street offering

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

FTC's Google investigation probed by Senate antitrust chief

7 hours ago

The chairman of a U.S. Senate antitrust panel will look into the release of a confidential Federal Trade Commission report on an investigation of Google Inc.'s search business, which was closed in 2013 without an enforcement ...

Traffic court goes digital: Startup fosters settlements

7 hours ago

Traffic court is going digital. Michigan startup Court Innovations has developed a software solution that allows drivers to settle traffic violations by negotiating in a virtual environment instead of showing up to court ...

Amazon puts home staples on refill button

8 hours ago

Amazon moved Tuesday to become an errand service for home staples, introducing a "dash button" to allow consumers to instantly order popular products for home and kitchen.

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.