Credit Line Secured By Twitter Prior To Its IPO

Credit Line Secured By Twitter Prior To Its IPO

A $1 billion line of credit was acquired by Twitter recently from a number of banks underwriting the initial public offering of the company. This was revealed through an amendment of its regulatory filing. The company will have the ability to utilize around $1 billion to meet unexpected expenses. Although interest is paid by the company, its updated S-1 filing through the Security and Exchange Commission indicated that it has yet to borrow funds.

It is normal for a credit line to be prepared by a company prior to an IPO. Facebook was able to secure a credit line of $8 billion in March 2012, prior to its IPO on May 2012. A $1 billion revolving credit line was also prepared by Zynga through banks in 2011.

The filing of Twitter showed that MoPub had around $6.52 million in revenues in the first half of the year. The amount was over twice its recorded revenue for 2012. The social network revealed through its filing that the acquisition may be finalized by November. MoPub is the mobile exchange network that is being purchased by the social network for around $350 million.

Last October 3, the social network revealed its plans of going public with the objective of raising around $1 billion. Twitter will be listed under the New York Stock Exchange.

Posted by James Fried on Wednesday December 04 2013, 3:04 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0