Before Facebook’s largely anticipated initial public offering, or IPO, the company created a multi-billion USD credit line, as revealed by an amendment they made to their S-1 filing on Wednesday with the United States SEC. In late February, JP Morgan Chase Bank secured the $5 billion credit facility which allowed the Facebook to borrow as much as $2.5 billion before the IPO. This new line of credit is double the 2011 facility of $2.5 billion. In fact, this information was recently confirmed in a press release issued directly from Facebook officials, adding that the credit line is for five years and it’s an unsecured revolving line.
The New York Times were the ones to originally notice that the social networking giant updated the document. The updates also included information about a $3 billion bridge loan they had with JP Morgan that was recently closed. This loan was apparently created to assist the company is paying taxes on all employee shares that are exercisable when they go public. Facebook also saw an increase in mobile users in a month at 432 million which is up from the previous 425 million users.In the newest filings, everyone also discovered new details on Yahoo’s turn as the patent troll. The new findings detailed information about Yahoo sending Facebook a letter in late February condemning the social networking company of 13 patent infringements.
On the accusations, Facebook has said that they are still in the ongoing process of looking into the claims that were contained within the letter. The officials also added that Yahoo had not taken any legal action against them yet, but may look to take that action in the future. As recently expected, Facebook added additional banks as underwriters, adding such banks as Deutsche Bank, Wells Fargo, Credit Suisse, and Citigroup. This means that the IPO now has a total of 31 underwriters.
Source: NYTimes
