The Transform Technology Summits start October 13th with Low-Code/No Code: Enabling Enterprise Agility. Register now!
Facebook has established new multi-billion dollar credit lines prior to its hotly anticipated initial public offering, according to an amendment to its S-1 filing with the U.S. Securities and Exchange Commission Wednesday.
A $5 billion credit facility was secured with JPMorgan Chase Bank in late February that will allow Facebook to borrow up to $2.5 billion prior to its IPO. The new credit facility is double the $2.5 billion facility it had established in 2011.
The social networking company’s updated document, spotted by the New York Times, also included details on a recently closed $3 billion bridge loan with JP Morgan, intended to help the company pay taxes on employee shares that vest when Facebook goes public. It also touted a 432 million monthly active mobile user figure, up from 425 million.
“In February 2012 … we entered into a new agreement for an unsecured five-year revolving credit facility that allows us to borrow up to $5,000 million for general corporate purposes,” Facebook said in its prospectus. “Prior to our initial public offering, we can borrow up to $2,500 million under this facility.”
In the fresh filing, we also learned a few more details about Yahoo’s turn as patent troll. According to the prospectus, Yahoo sent Facebook a letter on Feb. 27 accusing the far trendier social networking company of infringing on 13 patents.
“We are still in the process of investigating the allegations contained in the letter,” Facebook said. “To date, Yahoo has not commenced any legal action against us, but it may do so in the future.”
Facebook, as expected, has also added more banks, including Wells Fargo, Deutsche Bank, Citigroup, and Credit Suisse, as underwriters. There are now a grand total of 31 underwriters for the IPO.
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more