Facebook Gets Permission To Borrow $5 Billion

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Photo: Sean Gallup / Getty Images

Facebook has a new filing with the Securities and Exchange Commission today, confirming the addition of new bankers for its initial public offering.The filing also indicates that Facebook is taking out a $5 billion credit line.

Here’s the list of new bankers in the lead group:

  • Citigroup
  • Credit Suisse
  • Deutsche Bank
  • RBC Capital
  • Wells Fargo Security 

Here’s what Facebook can do with the credit line, according to the prospectus:

The Borrower (Facebook) shall use the proceeds of the Loans for working capital and other general corporate purposes, including, without limitation, to finance capital expenditures arising from the development of data centre facilities of the Borrower and the Subsidiaries, acquisitions and repurchases of Equity Interests and Indebtedness of the Borrower, and to fund tax withholding and remittance obligations arising upon the vesting and settlement of RSUs in connection with the Borrower’s IPO or to reimburse the Borrower for paying such tax withholding and remittance obligations. No portion of the proceeds of any Loan will be used in any manner that entails a violation of Regulation U or X of the Board of Governors.

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