Spotify is raising $1 billion in debt as streaming competition heats up, according to The Wall Street Journal's Douglas Macmillan, Matt Jarzemsky, and Maureen Farrell.

The round was led by TPG andDragoneer, and includes "some onerous guarantees," The Journal reports. The deal has reportedly already been signed.

This loan could be converted to stock if Spotify goes public.

Previous reports from Bloomberg and Sky News had indicated that Spotify was seeking to raise $500 million or more in debt from TPG and others, with Goldman Sachs advising.

Spotify has 30 million paying subscribers, CEO Daniel Ek said earlier this month.

Competition in the streaming space has intensified over the past year, with the launch of Apple Music (over 11 million subscribers in February), the rebranding of Tidal (3 million subscribers in March), and Tuesday's entry of SoundCloud into the premium-streaming market. Pandora has also spoken of plans to enter the streaming market as quickly as possible.

Spotify was not immediately available for comment.

This story first appeared on Business Insider