Facebook Enters Five-Year Senior Unsecured Revolving Credit Facility With JPMorgan Chase

Facebook announced in a Form 8-K filing with the Securities and Exchange Commission Thursday that it entered into a five-year senior unsecured revolving credit facility with JPMorgan Chase, allowing it to borrow up to $6.5 billion, and replacing its existing credit facilities. The company also paid off the $1.5 billion principal amount that had been outstanding under the now-terminated amended and restated term loan, also with JPMorgan Chase.

The company said any amounts owed under this facility will be due Aug. 15, 2018, adding that it terminated an existing $5 billion revolving credit facility with JPMorgan Chase, as well as a $1.5 billion term loan facility with the same bank.

The entire Form 8-K filing is available here, and the portion introducing the new credit facility follows:

On Aug. 15, 2013, Facebook Inc. (the “company”) entered into a five-year senior unsecured revolving credit facility (the “2013 revolving credit facility”) with JPMorgan Chase Bank N.A. as administrative agent, and the lenders party thereto. The 2013 revolving credit facility replaces the company’s existing credit facilities and allows the company to borrow up to $6.5 billion to fund working capital and general corporate purposes. Interest under the 2013 revolving credit facility will be payable on the borrowed amounts set at the London Interbank Offered Rate (LIBOR) plus 1 percent. The company paid origination fees at closing of the 2013 revolving credit facility, which fees are being amortized over the term of the facility. The company is also obligated to pay an annual commitment fee of 0.10 percent on the daily undrawn balance of the facility. Any amounts outstanding under this facility will be due Aug. 15, 2018. No amounts have been drawn under this facility as of the date hereof.

On Aug. 15, 2013, in connection with entering into the 2013 revolving credit facility, the company terminated its existing undrawn $5 billion revolving credit facility with JPMorgan Chase Bank N.A. as administrative agent, and the lenders party thereto. In addition, the company terminated its existing $1.5 billion term loan facility (the “amended and restated term loan”) with JPMorgan Chase Bank N.A. as administrative agent, and the lenders party thereto, under which it had $1.5 billion principal amount outstanding. Pursuant to the terms of the amended and restated term loan, the company had the option to repay this facility at any time prior to the maturity date without penalty, and the company repaid the principal and discharged itself of all other obligations in connection with the termination of this facility.

Image courtesy of Shutterstock.

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