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: Venture investments jump to $9.5B in 1Q

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

Venture investments jump to $9.5B in 1Q

12 minutes ago

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into an increasing number of deals, according to a report due out Friday.

Weibo IPO below expectations, raises $285.6 mn

Apr 17, 2014

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

Apr 17, 2014

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

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.

More news stories

Venture investments jump to $9.5B in 1Q

Funding for U.S. startup companies soared 57 percent in the first quarter to a level not seen since 2001, as venture capitalists piled more money into an increasing number of deals, according to a report due out Friday.

White House updating online privacy policy

A new Obama administration privacy policy out Friday explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites. It also clarifies that ...

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...

Scientists tether lionfish to Cayman reefs

Research done by U.S. scientists in the Cayman Islands suggests that native predators can be trained to gobble up invasive lionfish that colonize regional reefs and voraciously prey on juvenile marine creatures.

Leeches help save woman's ear after pit bull mauling

(HealthDay)—A pit bull attack in July 2013 left a 19-year-old woman with her left ear ripped from her head, leaving an open wound. After preserving the ear, the surgical team started with a reconnection ...