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Anthropic’s revolving credit facility is set to exceed its approximately<\/a> $10 billion target, as the artificial intelligence company lays the groundwork for its highly anticipated initial public offering. <\/p>\n The potential expansion has banks looking to secure a role in the credit facility and potentially strengthen their chances of winning an underwriting mandate for the Claude chatbot maker’s IPO, sources familiar with the matter told<\/a> Bloomberg. <\/p>\n While the size of the credit facility has yet to be finalized, plans could ultimately change. Anthropic could keep the revolver at its original target or scale it back below $10 billion, sources added. <\/p>\n Morgan Stanley, Goldman Sachs and JPMorgan are reportedly working on Anthropic’s IPO and Anthropic has been holding discussions with investors in recent weeks. <\/p>\n Read Also:HarbourVest Buys $1 Billion of UC Investments’ Private Equity Stakes<\/a> <\/p>\n Earlier this month, it was reported that Anthropic was seeking new financing<\/a> to increase the company’s existing $2.5 billion five-year revolving credit facility, obtained from lenders last year. Morgan Stanley, Barclays Plc, Citigroup, Goldman Sachs, JPMorgan, Royal Bank of Canada and Mitsubishi UFJ Financial Group participated in the credit facility last year, CNBC reported.<\/a> <\/p>\n A revolving credit facility gives companies access to funds that can be borrowed, repaid and borrowed again as needed, providing financial flexibility without requiring immediate use of the full amount. <\/p>\n Expanding credit facilities before an IPO is a common move for companies preparing to enter public markets. The same banks that extend these credit lines often serve as underwriters for the share sale. <\/p>\n Elon Musk’s Space Exploration Technologies Corp (NASDAQ:<\/a>SPCX<\/a>) followed a similar approach, increasing its credit facility with several of its IPO bankers roughly a month before its June public offering<\/a>. <\/p>\n