(Bloomberg) — A Reddit Inc. shareholder is in search of to determine a credit facility using an equity stake in the corporate, in response to an individual aware of the matter.

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Advance Magazine Publishers Inc., the arm of the Newhouse family publishing empire that owns Conde Nast, is offering 7.8 million shares for $145.38 to $148.54 each, which could be valued at as much as $1.2 billion, people aware of the matter said. The range would represent a reduction of as much as 8% to Reddit’s closing price on Thursday of $158.02 each.

Individually, Advance is buying derivatives on the shares, which can allow it to keep up its ownership stake while enabling it to create the credit facility, one among the people said.

Reddit shares fell as much as 7.9% within the aftermarket on Thursday, after having climbed 16% throughout the regular trading day.

Details could change and no final decisions have been made, the people said. A representative for Advance didn’t immediately reply to requests for comment. The main points of the block were first reported on X by The Inner Circle Trading Group.

The deal comes after Reddit’s stock price has climbed greater than 300% since its IPO in March, which raised $860 million. The social media firm licenses its data to coach artificial intelligence models, and has benefited alongside corporations including Arm Holdings Plc and Astera Labs Inc. from the surge of investor interest within the technology.

Earlier on Thursday, an arm of Tencent Holdings Ltd. disclosed the sale of 654,979 Reddit shares on Nov. 19 for proceeds of $88.5 million.

(Updates with details of credit facility in first three paragraphs and share move in fourth paragraph.)

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