Squarespace Considers $400 Million Pre-IPO Credit Facility
(Bloomberg) -- Do-it-yourself website service Squarespace Inc. is in discussions with banks to borrow as much as $400 million in a credit facility that would help set the stage for an initial public offering, according to people with knowledge of the matter.
The company is seeking to put the facility in place ahead of a listing that could occur in 2021 or later, said the people, who asked not to be identified because the talks are private. Unlike some other high-profile unicorns -- startups valued at $1 billion or more -- Squarespace is cash-flow positive, the people said.
A representative for New York-based Squarespace declined to comment.
Squarespace was valued at $1.7 billion in December 2017 when General Atlantic LLC invested $200 million, adding to a $40 million stake taken in 2014. Earlier investors included Index Ventures and Accel, which led a $38.5 million investment in 2010.
Led by founder and Chief Executive Officer Anthony Casalena, Squarespace made its first acquisition in April. It didn’t disclose the terms of its agreement to acquire Acuity Scheduling Inc., which helps small businesses manage appointments online, according to a statement.
In October, Squarespace announced that it had added Unfold, an app that helps users create stories across social media platforms.
Securing a credit line from Wall Street often precedes a public offering. Companies routinely reward banks that make big lending commitments with roles on their IPOs, with lenders sometimes offering better financing terms in return.
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