Anthropic is poised to expand its revolving credit facility beyond the initially targeted $10 billion, according to a Bloomberg report citing sources familiar with the matter. The move comes as major banks compete for lucrative roles in the artificial intelligence company's anticipated initial public offering.
Banks jockey for IPO positions
The potential expansion would see the credit facility exceed its original $10 billion target, though discussions are ongoing and the final size could remain at or below that level. Banks are seeking larger commitments to strengthen their standing ahead of the IPO, with the most active lenders being asked to contribute approximately $1.25 billion each. A second tier of active banks has been encouraged to offer around $1 billion, while less active participants might commit $750 million or less.
In syndicated lending, larger commitments typically translate into higher fees for banks. A bigger role in the credit facility can also position a bank for a more prominent part in subsequent capital markets transactions, such as the IPO itself.
Significant increase from prior facility
A facility above $10 billion would mark a substantial jump from the $2.5 billion five-year revolving credit line Anthropic secured last year. That facility included Morgan Stanley, Barclays, Citigroup, Goldman Sachs, JPMorgan, Royal Bank of Canada, and Mitsubishi UFJ Financial Group.
The potential expansion follows discussions around a much larger debt package for Anthropic-related data-center infrastructure. Banks led by Morgan Stanley were previously in talks to arrange $15 billion of debt for a Texas data-center project, with Alphabet's Google providing backing. The proposed financing included a $14 billion bridge loan and a revolving credit facility.
IPO market revival
Anthropic's financing activity comes as the AI boom has revived the IPO market. Companies going public this year have raised $257 billion, excluding blank-check firms and other financial vehicles, according to Bloomberg data. That is the highest amount raised in a year since 2021.
Revenue growth fuels IPO ambitions
Anthropic's rapidly increasing revenue has strengthened expectations surrounding its potential public listing. The company's annualized revenue run rate reached more than $65 billion by the end of July, according to Bloomberg News. The company reported preliminary quarterly revenue of more than $11.5 billion in its latest completed quarter, compared with $787 million in the same period a year earlier. It also reported positive adjusted operating income for the quarter, according to documents cited by Bloomberg.
Reuters separately reported that Anthropic is projecting revenue of roughly $190 billion to $200 billion in 2028. The company confidentially filed for a US IPO in June and is expected to potentially debut as soon as this fall, ahead of rival OpenAI. It has also been meeting with investors as it prepares for a possible large-scale listing.
The planned credit facility expansion highlights the growing financing needs surrounding Anthropic as it scales its AI business while preparing for the public markets. However, the final size of the revolver has not been decided.
This article is for informational purposes only and does not constitute financial advice.
