Twitter secures $1 billion credit line ahead of its IPO
Line of credit will help the social network cover unforeseen expenses should its trading debut be delayed.
Twitter has obtained a $1 billion line of credit from some of the banks underwriting its initial public offering, the company revealed Tuesday in an amended regulatory filing.
The unsecured line, which was established this month, would allow Twitter to borrow up to $1 billion to cover unforeseen expenses if its IPO is delayed. Twitter has to pay interest on anything it borrows, but said in its updated S-1 filing with the Securities and Exchange Commission that it had not borrowed any funds as of Tuesday.
It's not unusual for a company to arrange a credit line preceding an IPO. Facebook secured an $8 billion credit line in March 2012 ahead of its May 2012 trading debut. Game publisher Zynga also from its bankers in 2011.
Twitter's filing also revealed that MoPub -- the mobile ad exchange that the social network is-- had $6.52 million in revenue during the first half of this year, more than twice the $2.69 million it recorded for 2012. Twitter said in its filing it expects the acquisition to close in November.
Twitter formally announced on October 3 itswith a goal of raising $1 billion. The social network will trade on the New York Stock exchange under the ticker symbol TWTR.