Wall Street working on Twitter’s credit line
Call it tweet consolation!
JPMorgan Chase and Morgan Stanley have nabbed lead rol𝓰es on a planned revolving line ♚of credit for Twitter ahead of the red-hot tech company’s much anticipated stock debut.
For the banking duo, landing the lead on Twitter’s c🐬redit line is a sort 🐼of consolation prize after losing out on the more lucrative lead role in the microblogging site’s IPO.
Goldman Sachs is believed to have nabbed the chief 🍸role in Twitter’s offering, which is expected to be launched sometime around Thanksgiving, sources tell The Post.
Twitter is seeking a credit line — for working capital purposes — of $500 mꦅillion to as much as $1 billion ahead of its IPO, sources familiar with the situation said🦋.
It’s unclear how large the l🎉ine of credit will be — but if Twitter follows Zynga’s lead, it would go to the upper range of $1 billion.
JPMorgan and Morgan Stanley also have roles in the upcoming IPO, the most anticipated sin📖ce Facebook’s debut in May 2012.
Spokespersons for the banks declined to𒊎 comment and a Twitter spokesman did not return a call seeking comment.
A line of credit for a company about🌸 to go public is not unusual or a sign of financial trouble.
Bankers sometimes advise companies to secure as much rainy-day cash as they possibly can ahe❀ad of a listing, in case market turbulence or other factors delay the🌳 IPO.
Twitter, which elected to submit a confidential IPO filing with regulato💎rs, does not have to make its financial information public until 21 days🍌 before it intends to market the deal to prospective investors.
The confidential IPO process is part of the JOBS, or Jumpstart Our Business Start🐷ups, Act signed into law by President Obama 17 months ago.
The law is aimed at making the route to going public less ꧙expensive and shorter.
It i🌳sꦫ reserved for companies with revenues under $1 billion.
The seven-year-old San Francisco-based tᩚᩚᩚᩚᩚᩚᩚᩚᩚ𒀱ᩚᩚᩚech fir♋m is expected to have nearly a dozen banks participating in varying roles in its upcoming offer.
It has not yet decided whether to list ✨on the New York Stock Exchange or the Nasdaq.
Mea🐻nwhile, Twitter, i♒n accordance with its goal of avoiding a repeat of Facebook’s überhyped — and ultimately botched — IPO, has told bankers working on the deal to keep their lips sealed.
The company wants to avoid a repeat of ✱Facebook’s over-hyped market debuﷺt, which disappointed investors when the shares traded below the IPO price for nearly a year.
Facebook, critics said, was pric🗹ed too h♏igh at its debut, at $38, and it stumbled badly — spending its first 14 months under the IPO price.
Twitter may be willing to leave some mo🦂ney on the table in pricing its stock offering to get that first-day pop, soꦅurces said.