Palantir Files 8K, Increases Credit Limit
Palantir filed an 8K with the SEC after hours on April 1st, 2022.
The photo and analysis below was captured by TJ, an incredible resource for the Palantir Community on Twitter.
The 8K is for amending the existing credit agreement Palantir had with Morgan Stanley to increase their credit line by $100M.
This also happened last year on April 1st, 2021.
Given Palantir has around $2.3B of cash on their balance sheets and no debt, it makes sense for them to be clear to get an upgrade on their credit agreement with MS.
When companies show superb financials and balance sheets, lenders tend to give them much more easier access to capital because they know the company will likely pay it back without any major issue.
Palantir's financials have allowed them to be in a position where if they needed to borrow larger amounts of capital, they now have the ability to do so with 100 million more dollars from Morgan Stanley.
Shyam Sanker, COO of Palantir, also did an interview at the Morgan Stanley conference last month - you can watch my analysis of it here.