Facebook Halving Credit Line, Extending Term

Facebook is tweaking its credit line due to a reduction in its potential tax liability, halving the total to $1.5 billion from $3 billion, but extending its term to three years from one year, according to reports.

Bloomberg reported that a source familiar with the transaction shared the news about the reduction and extension, adding that spokespeople for Facebook and banks involved in the financing — including Morgan Stanley, Goldman Sachs, and J.P. Morgan — would not comment.

Facebook increased what was then a $2.5 billion credit line in March, anticipating a major tax hit following its May 18 initial public offering due to payment of taxes on its employees’ restricted stock units. But the social network’s falling share price has lowered its tax hit, according to Bloomberg.

Image courtesy of Shutterstock.

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