Facebook have managed to secure $8 billion just before they launch into the initial public offering. This is according to documents which were provided to US regulators.
The company have secured a $5 billion revolving line of credit over three years from a bank consortium including Morgan Stanley, Goldman Sachs, JP Morgan and Bank of America-Merrill Lynch. Documents were filed Wednesday with the Securities and Exchange Commission (SEC).
Facebook have also 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 initial public offering (IPO). The company decided to go public in February with the goal of achieving $5 billion or more in the largest stock floatation ever by an internet based organisation. It looks now as if that figure would peak to around $10 billion.
Mark Zuckerberg, the founder of Facebook was formed just eight years ago by Mark Zuckerberg when he was just 19 years old. They reported a net income of $668 million last year, which was almost double the previous year.
Kitguru says: Facebook are currently valued close to $100 billion.