Square secures credit in 'low hundreds of millions'
Summary
Mobile payments company Square has secured a new revolving credit facility as the burgeoning startup seeks more permanent capital to grow. Goldman Sachs led the deal, which was inked over the weekend, and Morgan Stanley, JPMorgan Chase, Barclays and Silicon Valley Bank also participated, according to people familiar with the situation. Squares valuation has been rising steadily as both Wall Street and Silicon Valley have begun trying to size up the risk it poses to the payments sector. Recent investments have valued Square around $5 billion, and banking executives have openly suggested a more involved partnership with Square—similar to the deal struck with Visa decades ago—would be advantageous or even possible. It is unclear when Square will pursue an IPO, but securing debt financing has been viewed as a precursor to that move after companies like Facebook, Twitter, Spotify and most recently, Dropbox, had taken similar actions.
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