Facebook Inc., operator of the world's largest social network,plans to reduce by half a $3 billion credit line due to a declinein its tax liability, a person familiar with the matter saidyesterday.

The Menlo Park, California-based company also plans to extendthe term of the loan to three years from one year, said the person,who asked not to be named because the matter is private.

Facebook said in March that it secured a $3 billion 364-daybridge loan to fund taxes for employees who exercise theirrestricted stock units. It also lined up a $5 billion five-yearrevolving line of credit ahead of its initial public offering inMay, according to a filing.

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