TLDR
- Meta is seeking $20 billion to $25 billion in a bond sale, with pricing expected Tuesday afternoon.
- Reuters reported a five-part, $15 billion U.S. dollar offering.
- The stock rose 2.7% Tuesday and was up 1.46% after hours.
- S&P Global Ratings moved Meta’s outlook to AA- negative on Friday.
- Meta plans to raise $95 billion in total for AI work.
Meta Platforms (META) stock rose 2.7% on Tuesday as the company went to the bond market. It was up another 1.46%, or $9.07, in after-hours trading.
The move came after a rough stretch. The stock had dropped in 12 of its previous 14 trading sessions.
October also turned out to be its worst month in four years. Tuesday’s bounce arrived with a big funding push attached.
Meta is seeking $20 billion to $25 billion in a bond sale, according to people familiar with the matter. They asked not to be named because the details are private.
Two-thirds of the deal is expected in U.S. dollars. The other third is set to be in euros.
How the Bond Deal Came Together
Bloomberg News first reported the plans. Meta declined to comment.
Final pricing was expected Tuesday afternoon, the sources said. The money is meant to support spending on AI infrastructure, models and services.
The Spending Behind the Debt
In its third-quarter report last month, Meta put full-year capex at $135 billion to $145 billion. That lifted the low end of its earlier guidance by $5 billion.
Free cash flow came in at negative $2.12 billion for the quarter. Alphabet and Amazon also reported negative figures.
On Friday, S&P Global Ratings changed Meta’s outlook from AA- stable to AA- negative. It pointed to “uncertainty” around the heavy capex and negative free cash flow.
The rating itself stayed at AA-. Only the outlook changed.
Debt is not the only piece of the plan. Meta said last week it intends to raise $95 billion for its AI work.
The first $35 billion would come from underwritten public equity offerings. Another $60 billion would come through an at-the-market program.
Meta has been here before this year. It raised $25 billion in an April bond sale.
Add it up and the company has $25 billion from April, a new bond deal this week, and a $95 billion plan on the table.
Later Tuesday, Reuters reported that Meta said it is raising $15 billion through a five-part U.S. dollar bond offering. The company is turning to debt markets to help finance its accelerating AI infrastructure investments.
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