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BREAKING NEWS FROM CNBC’S KAYLA TAUSCHE: FACEBOOK SEEN SEALING 2-PART $7.5B+ CREDIT FACILITY

WHEN: Today, Wednesday, March 7, 2012

WHERE: CNBC’s “Closing Bell with Maria Bartiromo

Following is the unofficial transcript of breaking news from CNBC’s Kayla Tausche. All references must be sourced to CNBC.

KAYLA TAUSCHE: WE HAVEN’T HEARD MUCH ABOUT FACEBOOK SINCE IT FILED ITS FIRST AMENDMENT TO ITS S1 SEVERAL WEEKS AGO, BUT I WANTED TO GIVE YOU AN UPDATE ON THE CREDIT FACILITY. MY SOURCES ARE TELLING ME THAT THIS FACILITY WILL COME IN TWO PARTS. IT COULD BE NORTH OF SEVEN AND A HALF BILLION DOLLARS AND THAT’S BECAUSE PART OF THIS IS GOING TO BE A SHORTER TERM FACILITY THAT IS ROUGHLY TWO AND A HALF BILLION DOLLARS. THAT WILL COVER THE RESTRICTED STOCK UNITS THAT FACEBOOK WILL BE OBLIGATED TO PAY SOME FEES ON, SOME TAXES ON, WHEN THOSE ACTUALLY COME IN TO PLAY DURING THE SIX MONTHS FOLLOWING THE IPO. SO THAT IS THE SHORTER TERM FACILITY. THE OTHER, IS AN EXPANSION OF THE EXISITNG TWO AND A HALF BILLION DOLLAR FACILITY THAT FACEBOOK HAS HAD IN PLACE FOR SOME TIME FROM ITS EXISTING BANKS. NOW OF COURSE WE KNOW THAT CITIGROUP, DEUTSCHE BANK AND CREDIT SUISSE WILL BE ADDED TO THE SLATE OF UNDERWRITERS. IT IS ALSO EXPECTED THAT THROUGHOUT THIS PROCESS A BROAD MIX OF ADDITIONAL BANKS COULD BE ADDED, BUT AS FAR AS THE BULGE BRACKET BANKS, THEY WILL BE EXPECTED TO BE A PART OF BOTH OF THESE FACILITIES WHENEVER WE GET THE NEWS OF AN ADDITIONAL FILING.

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