Facebook arranges $6.5 billion five-year revolver via JPMorgan

By Toni Weeks

San Luis Obispo, Calif., Aug. 15 - Facebook, Inc. arranged a $6.5 billion five-year senior unsecured revolving credit facility on Aug. 15 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Interest will accrue at Libor plus 100 basis points. Facebook will also pay an annual commitment fee of 10 bps on the daily undrawn balance.

The revolver, which matures Aug. 15, 2018, replaces the company's previous $5 billion revolver, which was terminated on Aug. 15. On the same date, the company terminated its existing $1.5 billion term loan facility, which had $1.5 billion outstanding. That amount was repaid on Thursday. No amounts were drawn under the new facility as of the closing date.

J.P. Morgan Securities LLC and BofA Merrill Lynch are joint lead arrangers and joint bookrunners for the new facility. Morgan Stanley Senior Funding, Inc. and Barclays Bank plc are additional bookrunners. Bank of America, NA, Morgan Stanley Senior Funding and Barclays are documentation agents.

Proceeds may be used for working capital and general corporate purposes.

Facebook is a Menlo Park, Calif.-based social networking company.

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