File-storage services firm Dropbox has reportedly secured a $600m credit line, as it moves ahead with plans to go for an initial public offer (IPO) this year.
The credit facility, which is led by JPMorgan Chase, is expected to close on the 3rd of April, people familiar with the plans told Bloomberg.
Bank of America, Deutsche Bank, Goldman Sachs Group, Macquarie Group and Royal Bank of Canada are the other banks that participated in the new debt facility.
The San Francisco-based company is holding discussions with bankers to discuss plans for the public issue, the publication reported.
Though the company hasn’t disclosed the timing of the IPO, potential advisers expect it to be prepared to issue the public offer by the end of 2017.
Dropbox could utilise debt facilities if it intends to expand rapidly or make acquisitions, said the person.
After its launch in 2007, Dropbox has gained signifcant users who want to store photos and other files in the cloud.
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In early 2014, the company obtained a valuation of $10bn to emerge as one of Silicon Valley’s most valuable unicorn startups.
After going public in 2015, Dropbox’s rival Box lost 40% of its market value in that year.
Box’s value decline made private investors of Dropbox look at the company under close scrutiny, with mutual fund backers writing down the values of their stakes.
To boost its revenues, Dropbox started offering cloud service to larger businesses and trimmed costs by building its own data centers.
At the Bloomberg Technology Conference in June last year, Dropbox’s chief executive officer Drew Houston said that the company is free-cash-flow positive though it is yet to make profits.
Although it has yet to make profits, Dropbox is popular among consumers and business.
Houston, at Fortune’s Brainstorm conference in May 2016, said that nearly 200,000 business teams pay for Dropbox products, with the Dropbox company website stating that it has 500 million registered users worldwide.
