Snap seeks $1bn loan to cover running costs

Josh Hall's picture

Snap, the company behind Snapchat, is attempting to raise $1 billion in new debt financing.

The company says it will use the money to cover its general operating costs, in a move that has seen Snap stocks trade lower this morning on the New York Stock Exchange.

Snap has also indicated that it could use the loan, which will mature in 2026, to make further acquisitions to bolster its existing offerings.

The company debuted on the NYSE last year, but its stocks have languished for much of the time it has been public.

Last month its fortunes appeared to improve when Snap shares closed higher than their $17 IPO price for the first time.

The performance came on the back of a quarterly earnings report that saw it record improved user growth.

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