Meta Seeks Up to $25 Billion in Bond Sale as AI Spending Surges

Meta is looking to raise between $20 billion and $25 billion through a bond sale on Tuesday, as the company pours more money into artificial intelligence infrastructure, models and services.

People familiar with the matter, who asked not to be named because the details are private, said the sale is expected to be split roughly two-thirds in U.S. dollars and one-third in euros. Final pricing was expected Tuesday afternoon. Meta declined to comment, and Bloomberg News was first to report the plans.

The sale follows S&P Global Ratings' revision of Meta's outlook from AA- stable to AA- negative, citing uncertainty over its heavy capital spending and negative free cash flow.

In last month's third-quarter report, the Facebook parent said full-year capex would land between $135 billion and $145 billion, a $5 billion increase to the low end of earlier guidance. It posted negative free cash flow of $2.12 billion for the quarter, joining Alphabet and Amazon in reporting a negative figure.

Meta raised $25 billion in an April bond sale and said last week it plans to raise $95 billion to fund AI initiatives - starting with $35 billion in underwritten public equity offerings and another $60 billion through an at-the-market program.

Meta's stock rose 2.7% on Tuesday after falling in 12 of the prior 14 trading sessions and closing out October with its worst month in four years.

Source: CNBC