Spotify Said to Seek New Credit Facility in Step Toward IPO

Spotify Ltd., the Stockholm-based music-streaming company backed by billionaire Li Ka-Shing, is speaking with banks about raising a credit facility, a move that could presage an initial public offering in the U.S., people with knowledge of the matter said.

The digital music service with more than 6 million paying subscribers is working with Goldman Sachs Group Inc., which is also an investor in the company, to arrange the facility, said two of the people, asking not to be identified because the information is private. Banks often pitch loans to early-stage technology companies with an eye toward an underwriting role on an IPO down the road, the people said.