U.S. Markets closed
  • S&P Futures

    4,165.00
    -11.25 (-0.27%)
     
  • Dow Futures

    33,975.00
    -106.00 (-0.31%)
     
  • Nasdaq Futures

    14,005.50
    -24.00 (-0.17%)
     
  • Russell 2000 Futures

    2,259.00
    +3.30 (+0.15%)
     
  • Crude Oil

    62.81
    -0.32 (-0.51%)
     
  • Gold

    1,781.80
    +1.60 (+0.09%)
     
  • Silver

    26.07
    -0.04 (-0.15%)
     
  • EUR/USD

    1.1960
    -0.0020 (-0.1674%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • Vix

    16.25
    -0.32 (-1.93%)
     
  • GBP/USD

    1.3818
    -0.0021 (-0.1548%)
     
  • USD/JPY

    108.7510
    -0.0320 (-0.0294%)
     
  • BTC-USD

    56,939.54
    -4,040.54 (-6.63%)
     
  • CMC Crypto 200

    1,292.32
    -99.39 (-7.14%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,649.44
    -33.93 (-0.11%)
     

Robinhood Seeks More Bank Credit Ahead of Planned IPO

Matthew Monks and Michelle F. Davis
·1 min read

(Bloomberg) -- Robinhood Markets Inc. is seeking to boost its bank loans ahead of an initial public offering, according to people familiar with the matter.

The company, which pitches its trading platform to novice investors, has been holding talks with lenders about adding to its revolving credit lines, said the people, who asked to not be identified because the matter isn’t public. It isn’t clear how much the company is seeking.

Companies often secure a credit line before going public and this will make sure Robinhood has a strong capital and liquidity position, one of the people said.

The move would come several months after the firm raised debt and $3.4 billion in equity to comply with a margin call from the industry’s clearinghouse, a consequence of wild swings in stocks including video game retailer GameStop Corp.

A representative for Menlo Park, California-based Robinhood declined to comment.

The company’s credit lines include a $600 million revolver from banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, according to data compiled by Bloomberg.

Robinhood said last month that it had filed confidentially for what could be one of the most closely watched IPOs of the year.

While the company’s easy-to-use trading app became immensely popular with young people during the pandemic, it has drawn scrutiny from regulators and politicians for its role in the so-called meme-stock frenzy that included GameStop.

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.