Robinhood IPO: Robinhood seeks more bank credit ahead of planned IPO

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By Matthew Monks and Michelle F. Davis


Robinhood Markets Inc. is in search of to spice up its bank loans ahead of an preliminary public providing, in response to individuals conversant in 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, 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 in search of.

Companies usually safe a credit line earlier than going public and this can be sure that Robinhood has a robust capital and liquidity place, one of the 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 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 response to information compiled by Bloomberg.

Robinhood stated final month that it had filed confidentially for what could possibly be one of essentially the most intently watched IPOs of the 12 months.

While the corporate’s easy-to-use buying and selling app turned immensely widespread with younger individuals through the pandemic, it has drawn scrutiny from regulators and politicians for its function within the so-called meme-stock frenzy that included GameStop.

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