Robinhood Markets Inc. is looking for to spice up its financial institution loans forward of an preliminary public providing, in line with individuals accustomed to the matter.
The corporate, which pitches its buying and selling platform to novice buyers, has been holding talks with lenders about including to its revolving credit score traces, stated the individuals, 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.
Firms typically safe a credit score line earlier than going public and it will ensure Robinhood has a powerful capital and liquidity place, one of many individuals stated.
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 business’s clearinghouse, a consequence of untamed swings in shares together with online game retailer GameStop Corp.
A consultant for Menlo Park, California-based Robinhood declined to remark.
The corporate’s credit score traces embrace a $600 million revolver from banks together with JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, in line with information compiled by Bloomberg.
Robinhood stated final month that it had filed confidentially for what may very well be one of the vital intently watched IPOs of the 12 months.
Whereas the corporate’s easy-to-use buying and selling app turned immensely widespread with younger individuals throughout the pandemic, it has drawn scrutiny from regulators and politicians for its position within the so-called meme-stock frenzy that included GameStop.
