Daily News: October 23, 2013

Banks to Lend Twitter $1B Over Five Years

The banks underwriting Twitter’s upcoming initial public offering have officially agreed to lend it as much as $1 billion over the next five years, according to an SEC filing.

Morgan Stanley and J.P. Morgan Chase are contributing $250 million to the credit line, and Bank of America and Deutsche Bank are putting up $175 million each, according to the filing. Goldman Sachs Group, which is leading the underwriting of the IPO, is contributing $150 million, the filing said.

The $1 billion revolving credit facility, which was completed in October, will mature in October 2018. Twitter will pay an interest rate on any money it borrows ranging from 1 to 1.75 percentage points over LIBOR.

Previously on abfjournal: Goldman, Others Lead Twitter $1B IPO Revolver, October 15, 2013

To read the entire press release, click here.