Meta sells $15 billion of dollar bonds as its AI spending climbs
Meta priced five series of dollar notes due 2031 to 2056, per its SEC term sheet. CNBC reported the full plan, including euros, targets $20 billion to $25 billion.
By Marcus Rodriguez ·
Why it matters: Meta is now funding its AI build-out with debt and stock sales, not just cash from its ads business.
For information only, not investment advice. Prices delayed.
Tickers: META
Meta Platforms, the Facebook parent, sold $15 billion of US dollar bonds on Nov. 3, according to a pricing term sheet it filed with the SEC. The debt came in five series: $3,250,000,000 due 2031, $3,250,000,000 due 2033, $4,000,000,000 due 2036, $1,750,000,000 due 2046 and $2,750,000,000 due 2056. Interest rates run from 5.850% on the shortest notes to 7.500% on the longest, or 110 to 220 basis points over comparable Treasuries.
The dollar notes are one piece of a bigger plan. Meta is seeking between $20 billion and $25 billion in total, about two-thirds in dollars and one-third in euros, CNBC reported, citing people familiar with the matter. Bloomberg News first reported the plans, and Meta declined to comment to CNBC. The euro portion hadn't been priced in the sources reviewed. Briefs.co reported that the dollar sale drew peak demand of about $58 billion.
The borrowing comes days after S&P Global Ratings revised Meta's outlook to AA- negative from AA- stable, citing "uncertainty" about its capital spending and negative free cash flow, CNBC reported. Meta has guided to full-year capital spending of $135 billion to $145 billion and posted negative free cash flow of $2.12 billion last quarter.
Meta also raised $25 billion in an April bond sale and said last week it plans to raise $95 billion for its AI push: $35 billion through underwritten stock offerings and $60 billion through an at-the-market program, which sells shares gradually into the market.
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Tags: ai · big-tech · valuation