Facebook Inc., operator of the world’s largest social network, is reducing by half a $3 billion credit line arranged to fund taxes for employees who exercise their restricted stock units.
The length of the loan, secured before Facebook’s initial public offering in May, was also extended to 3 years from 364 days, and will probably be used to cover about half of the taxes, according to the filing.
Facebook had arranged the original $3 billion bridge loan, along with a $5 billion revolving credit facility, in February. Its tax obligations are now lower than it had expected because the value of its shares have fallen 49 percent since the IPO.
The revised agreement to the loan also named Barclays Plc and Deutsche Bank AG as exiting lenders from the original agreement. The financing was arranged by banks including JPMorgan Chase & Co., Morgan Stanley and Goldman Sachs Group Inc.
The company also made amendments to the $5 billion revolving credit facility, mainly due to changes related to the loan.
Tucker Bounds, a spokesman for Menlo Park, California-based Facebook, declined to comment.