Meta Platforms has returned to the investment-grade bond market with a $15 billion US dollar offering, part of a broader cross-border debt sale expected to exceed $20 billion and possibly reach $25 billion. The five-part dollar transaction includes maturities ranging from five to 30 years, with initial pricing guidance from about 130 basis points over US Treasuries for five-year notes to 250 basis points for 30-year paper. The company is also preparing its first euro-denominated bond, which could price Thursday.
The proceeds are earmarked for AI infrastructure, models and services, as Meta accelerates capital spending. In its third-quarter report, the company lifted full-year capex guidance to $135 billion to $145 billion and reported negative free cash flow of $2.12 billion. Meta also said it intends to raise $95 billion for AI work, split between $35 billion in underwritten public equity offerings and a $60 billion at-the-market program. This comes after a $25 billion bond sale in April.
The deal lifted Meta shares, which rose 2.7% Tuesday and added another 1.46% after hours, following a weak stretch that made October its worst month in four years. However, S&P Global Ratings changed Meta’s outlook from AA- stable to AA- negative on Friday, citing uncertainty around heavy capex and negative free cash flow, while leaving the rating unchanged.
The sale is part of a broader Big Tech borrowing wave. Oracle raised $10 billion, Alphabet priced €6 billion in euro bonds, and Microsoft raised $25 billion last week. Bloomberg Intelligence expects major cloud and AI infrastructure companies to spend nearly $4.5 trillion over the next three years, though investor caution is growing, with Meta’s bond spreads now the widest versus highly rated corporate peers since 2003.
