Facebook enters new $5 billion credit deal ahead of IPO

Facebook has a new $5 billion credit deal, doubling a previous $2.5 billion credit agreement as it prepares for an initial public offering (IPO).

The California-based social networking company said in a regulatory filing on 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 per cent to 6 per cent 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 per cent to 40 per cent 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 February 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.