Facebook enters new $5 billion credit deal
NEW YORK—Facebook has a new $5 billion credit deal, doubling a previous $2.5 billion credit agreement as it prepares for an initial public offering.
The social networking company based in Menlo Park, Calif., said in a regulatory filing Wednesday that it has also signed a $3 billion bridge-loan facility to pay taxes on restricted stock units in connection with its IPO. Those are employee shares that will vest when the company goes public.
Facebook, which has 845 million monthly active users by its own calculations, also disclosed that fake or duplicate accounts may represent about 5 percent to 6 percent of that figure.
And it gave some new revenue insights by geography. Facebook said in the filing that it is seeing rapid revenue growth in Brazil and in India. The company had 27 million monthly users in Brazil, up nearly fourfold from a year earlier but accounting for only 30 percent to 40 percent of the country's Internet-connected population. Its presence in China, where Facebook access is restricted, is nearly nonexistent.
Facebook's recent patent spat with Yahoo is also in the updated filing. Yahoo Inc. sent a letter to Facebook on Feb. 27 alleging copyright infringement and threatening to sue. Facebook said in the filing that it is still investigating Yahoo's claims and that Yahoo has yet to file a lawsuit.