Meta Seeks $25 Billion Bond Sale as AI Spending Pushes Capex to $145 Billion
Updated
Updated · CNBC · Nov 3
Meta Seeks $25 Billion Bond Sale as AI Spending Pushes Capex to $145 Billion
3 articles · Updated · CNBC · Nov 3
Summary
$20 billion to $25 billion is the target for Meta's Tuesday bond sale, with final pricing expected later in the day and the offering split roughly two-thirds in dollars and one-third in euros.
AI infrastructure, models and services are driving the fundraising, after Meta last month lifted full-year capital spending guidance to $135 billion-$145 billion, including a $5 billion increase to the low end.
S&P Global Ratings cut Meta's outlook to AA- negative days earlier, citing uncertainty around heavy capex and negative free cash flow; Meta reported a $2.12 billion free-cash-flow deficit in the latest quarter.
The sale follows a $25 billion April bond deal and sits alongside Meta's broader plan to raise $95 billion for AI, including $35 billion in public equity and $60 billion through an at-the-market program.
Meta shares rose 2.7% Tuesday after a steep slide that saw the stock fall in 12 of the previous 14 sessions and post its worst month in four years in October.