Online social networking tool Twitter Inc is finalizing a $1 billion revolving credit facility ahead of its expected initial public offering, sources told Thomson Reuters LPC.
Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America Merrill Lynch and Deutsche Bank are leading the deal that backs the most highly anticipated go public transaction in the technology space since Facebook Inc.
Representatives from the five banks declined to comment.
Revolving credits, which are generally used to back general corporate purposes and capital expenditures, guarantee access to funding for corporations. Companies are required to pay a commitment fee for the availability of capital even if the revolving credit remains undrawn.
Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America Merrill Lynch and Deutsche Bank are also underwriters of the IPO, which was filed publicly on October 3.
Twitter is expected to go public some time before Thanksgiving and has yet to determine pricing, according to Reuters, but analysts expect the company that posted a $69 million loss last year to seek a valuation of at least $10 billion.businessScience & TechnologyTwitter