Facebook IPO: Social networking giant signs $8 billion credit deal with consortium of banks

PALO ALTO, CA (Fri, Mar. 09) – Social networking website Facebook, has secured credit deal worth $8 billion from a consortium of banks ahead of the social network's eagerly anticipated initial public offering (IPO).

Social networking giant signs $8 billion credit deal with onsortium of banks

According to documents submitted Wednesday with the Securities and Exchange Commission (SEC); Facebook had secured a $5 billion revolving line of credit over three years from a bank consortium including Morgan Stanley, JP Morgan, Goldman Sachs and Bank of America-Merrill Lynch.

Sources in Facebook revealed that the company aims use the facility "for general corporate purposes." In the wake of new arrangement Facebook has terminated the credit facility agreement inked with Barclays Capital and others that granted the company the borrowing capacity of $2,500 million.

The social networking giant also said it had reached a deal with the same group for a $3 billion bridge credit facility to enable it to fulfill a number of obligations related to the initial public offering (IPO).

“This bridge credit facility allows us to borrow up to $ 3 billion to fund tax withholding and remittance obligations related to the settlement of RSUs (Restricted Stock Units) in connection with our initial public offering,” Facebook filing said.

In early February, Facebook filed for its IPO aiming to raise at least $5 billion in the largest stock flotation ever by an Internet company; but figure could grow to $10 billion depending upon the interest of investors.

The Palo Alto, California-based company, founded by Mark Zuckerberg eight years ago when he was just 19, reported net income of $668 million last year, up from $372 million the previous year.

In the documents filed Wednesday, Facebook also said it had now total of 31 underwriters after adding 25 to the existing six ahead of its IPO, expected later this year.

Facebook's value has been estimated at $75 billion to $100 billion.

Kingdom Holding Buys Shares of $300 Million in Microblogging Site Twitter

RIYADH, Saudi Arabia – Prince Alwaleed bin Talal, - nephew of Saudi King who earlier this month was declared as the Arab world’s richest business man - announced the purchase of a $300 million stakes in microblogging site Twitter.

According to an emailed statement from Prince Alwaleed’s Kingdom Holding Company; the huge investment in Twitter by the company is part of a drive “to invest in promising, high-growth businesses with a global impact.”

Prince Alwaleed’s stake is equivalent to 3.6% of the Twitter’s total value of $8.4 billion estimated by the analysts in October this year.

Microblogging site Twitter - allows users to send messages called ‘tweets’ of up to 140 characters each – has achieved recently a land mark of 100 million active users who send 250 million tweets per day.

“Social media will fundamentally change the media industry landscape in the coming years. Twitter will capture and monetize this positive trend,” Ahmed Halawani, executive director of private equity and international investments at Kingdom Holding, said in the same statement.

Arabian Business magazine has rated Prince Alwaleed as the Arab world’s richest business man, with more than $21 billion in wealth in 2011.

Officials of Kingdom Holding, which was pursuing to purchase the shares of Twitter since October, didn’t provide any further details of the deal early Monday. Matt Graves, a Twitter spokesperson, confirmed the deal but refused to comment further.

It is worth-remembering that different online forums and social-networks, like Twitter and Facebook, had played a key role in the on going Arab revolution as the same were extensively used by activists during this year’s Arab uprisings.

Investors to Buy Stock of US luxury Brands As Luxury Industry Companies Are Expected to Show a Bullish Trend

With the economic meltdown that shook the world in 2008, but its repercussions are still felt in some sectors. But the luxe market seems to have bounced back just right for Barclays Capital has rightly identified the shift of consumer demand again in the luxury segment. The analysts are tipping their investor to buy stock of US luxury brands.

Stock prices of luxury industry companies are expected to show a bullish trend. Investment analysts expect Saks, luxury American Specialty store seated in New York, to publish 5.5 % growth in Q4 sales. For brands like Polo Ralph Lauren and Coach 5 % gain looks likely. Also Tiffancy & Co. and Coach have known to recently hit all-times highs.Also with countries like China opening up luxury emporiums, new markets are emerging owing to escalating economic growth and a burgeoning middle class in developing economies.

Well, you have dollar bills stacked up, I would suggest that you rather buy stocks of luxury brands than their products because now is the right time to tap comeback of lifestyle products and make mega bucks out of it.

$30 Million Investment into Tesla Motors By Electronic Giant Panasonic at a Price of $21.15 Per Share

Panasonic has today announced that its has made a $30 million investment into Tesla Motors the Silicon Valley electric car manufacturer and designer. Through purchase of common stock in a private placement at a price of $21.15 per share.

Panasonic already supplies Tesla Motors with a standard-sized cylindrical battery cell which are used to power the firm’s electric roadster sports model.

The companies are now looking towards developing battery packs using Panasonic’s cells. With the market for lithium ion batteries for electric and hybrid vehicles expected to balloon to more than 40 times its current size in the next five years. Eventually overtaking the consumer battery market.

Rising Foreign Investment in India - - Despite the Global Economic Downturn, Investment Inflows Have Been Pouring into the Country

The investment scenario in India speaks volumes about the steady inflows of foreign direct investment (FDI) into India. Despite the global economic downturn, investment inflows have been pouring into the country in encouraging numbers. Total FDI inflow during April-December 2009-10 was US$ 21.5 billion as compared to US$ 21.15 billion during the corresponding period of 2008-09.

Investing in India is now one of the most acceptable norms world over with investors from foreign venture capital funds to overseas individual investors taking interest. In fact, a recent report by a leading economist from Goldman Sachs, Brent Ciliano, indicated that investment opportunities in India are aplenty and investors from the US should adopt bold investment strategies by including the Indian market in their portfolios.

Opportunities in healthcare, education, manufacturing, infrastructure and services sectors are growing steadily. The services sector has in fact, been garnering maximum FDI inflows consistently over past two years.

As a part of the agenda of the government of India to promote the inflows, the department of Industrial Policy and Promotion (DIPP) too has been reworking and redrafting the foreign direct investment policies into a single user-friendly framework. The framework is expected to be released by end March, 2010, as recently announced by Mr Anand Sharma, Union Minister of Commerce and Industry.

The government recently in February 2010 in a significant move also allowed the Foreign Investment Promotion Board (FIPB), under the commerce ministry, to clear foreign direct investment (FDI) proposals of up to Rs 1,200 crore. Previously, the total project cost, including the foreign equity inflow, was taken into consideration in deciding whether the proposal is to be put up for Cabinet Committee of Economic Affairs (CCEA) consideration. The new move will now allow only the proposals involving a foreign equity inflow of more than Rs 1,200 crore to be evaluated by CCEA. The Home Minister P Chidambaram said the relaxation would hasten the process and expedite FDI inflow into India.

Of late, investment experts such as Stephen Dover, managing director and international chief investment officer for Franklin Templeton Investments' Local Asset Management groups, have agreed that India's favorable demographics provide boost in consumption. Dover also remarked that the exchange rate is freer in India and that the company would make a long-term bet on India rather than China.

The positive and strong post-budget rally, after the budget was announced in the last week of February 2010, too has seen the net inflows into India from foreign institutional investors touch US$ 2-billion this fiscal. India has been one of the better performing emerging markets, owing to increased quantum of FII inflows, especially in the past few weeks.