Facebook Inc will add banks in coming weeks to help underwrite its initial public offering, two sources familiar with its plans said on Friday. Deutsche Bank, Credit Suisse and Citigroup are among the banks that will likely be added, said the sources, who requested anonymity because they were not authorised to speak publicly on the matter.
Last September, Facebook increased its credit line to $2.5 billion. One of the sources said that the credit line may be increased to about $5 billion in the future. In February 2011, Facebook set up a $1.5 billion credit agreement with affiliates of Morgan Stanley, J.P. Morgan Chase & Co, Goldman Sachs, Bank of America Merrill Lynch and Barclays Capital, the leading underwriters of the company's IPO.
Facebook plans to increase its credit line to help cover a tax bill related to employee stock awards that will vest soon after it goes public. On February 1, Facebook filed regulatory documents for an IPO. Bloomberg reported earlier on Friday that Facebook would add banks to its roster of IPO underwriters.
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