Summary
Meta Platforms, Inc. (formerly Facebook, Inc.) filed an 8-K on August 15, 2013, primarily announcing the establishment of a new five-year senior unsecured revolving credit facility totaling $6.5 billion. This new facility, which matures on August 15, 2018, replaces previous credit arrangements and is intended to fund working capital and general corporate purposes. Importantly, no amounts were drawn under this new facility at the time of the filing, indicating strong liquidity at that point.
Key Highlights
- 1Established a new $6.5 billion, five-year senior unsecured revolving credit facility maturing August 15, 2018.
- 2The new facility replaces prior, smaller credit facilities.
- 3Funds from the credit facility are designated for working capital and general corporate purposes.
- 4Interest rate is set at LIBOR plus a 1.0% spread.
- 5A commitment fee of 0.10% on the undrawn balance is payable annually.
- 6No amounts were drawn under the new facility at the time of filing, suggesting robust cash reserves.
- 7Terminated an existing $5.0 billion undrawn revolving credit facility and a $1.5 billion term loan facility.
Frequently Asked Questions
The primary purpose of the new five-year senior unsecured revolving credit facility is to provide Facebook, Inc. (now Meta Platforms, Inc.) with financial flexibility to fund working capital needs and general corporate purposes.
The credit facility has a maturity date of August 15, 2018. Interest on any borrowed amounts will be calculated based on the London Interbank Offered Rate (LIBOR) plus a spread of 1.0%.
Yes, the company terminated its existing $1.5 billion term loan facility, under which it had the full $1.5 billion principal amount outstanding. This amount was repaid upon the termination of that facility.
At the time of this filing on August 15, 2013, no amounts had been drawn under the new $6.5 billion credit facility, indicating that the company had sufficient liquidity and was not immediately relying on this facility for funding.