Robinhood Markets Inc. is looking for to spice up its bank loans ahead of an preliminary public providing, in keeping with folks accustomed to the matter.
The firm, which pitches its buying and selling platform to novice buyers, has been holding talks with lenders about including to its revolving credit traces, mentioned the folks, who requested to not be recognized as a result of the matter isn’t public. It isn’t clear how a lot the corporate is looking for.
Companies typically safe a credit line earlier than going public and this may ensure that Robinhood has a robust capital and liquidity place, one of the folks mentioned.
The transfer would come a number of months after the agency raised debt and $3.4 billion in fairness to adjust to a margin name from the trade’s clearinghouse, a consequence of wild swings in shares together with online game retailer GameStop Corp.
A consultant for Menlo Park, California-based Robinhood declined to remark.
The firm’s credit traces embrace a $600 million revolver from banks together with JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, in keeping with information compiled by Bloomberg.
Robinhood mentioned final month that it had filed confidentially for what could possibly be one of probably the most carefully watched IPOs of the 12 months.
While the corporate’s easy-to-use buying and selling app grew to become immensely in style with younger folks through the pandemic, it has drawn scrutiny from regulators and politicians for its position within the so-called meme-stock frenzy that included GameStop.