Twitter lands USD1 billion credit line
In an announcement, Twitter said it was able to corner a USD1 billion credit facility this month. This is another example of social media companies accessing the debt market after it had undertaken an initial public offer.
In documents filed with regulatory authorities, Twitter also announced that its soon to be acquired start up MoPub Inc had recorded sales worth USD6.52 million for the first half of the year. This was an increase from the recorded sales of USD2.69 for the whole of 2012. This acquisition is scheduled to be completed by November, according to an updated prospectus Twitter had filed with the US Securities and Exchange Commission.
Twitter is following the path undertaken by Facebook Inc. and Zynga Inc., as the two had accessed credit facilities related to their recently completed IPOs. For its part, Facebook Inc had received a USD8 billion financing package prior to its 2012 offer while Zynga had finalized a USD1 billion credit line from its underwriters in 2011.
The credit line was provided by the banks managing the Twitter IPO. These include lead underwriter Goldman Sachs Group Inc, which provided USD150 million while Morgan Stanley and JPMorgan Chase pledged USD250 million.