WSJ: Facebook Will Cut $3B Credit Line In Half

Following its disastrous initial public offering, Facebook will be reducing its $3 billion credit line by half, according to a report by the Wall Street Journal late Friday, citing sources familiar with the situation. The Journal reports that the move comes as a result of Facebook’s lower lax liabilities due to the drop in the price of its stock since Facebook’s initial public offering on May 17, now down 45 percent. Facebook is also reported to be extending its loan term from one year to three.