Meta plans bond sale of up to $25 billion as AI spending grows

Meta is seeking to raise $20 billion to $25 billion through a bond sale to help fund AI infrastructure, models and services. The planned borrowing follows increased capital-spending guidance and a quarter with negative free cash flow.

• Meta is seeking to raise between $20 billion and $25 billion in a bond sale, expected to be about two-thirds in US dollars and one-third in euros.· 1 source
• The proceeds would support spending on AI infrastructure, models and services; the company’s full-year capital-spending forecast is $135 billion to $145 billion.· 1 source
• S&P Global Ratings changed Meta’s outlook from stable to negative, citing uncertainty about capital spending and negative free cash flow. Meta reported negative free cash flow of $2.12 billion for its latest quarter.· 1 source
• The report said final pricing was expected Tuesday afternoon. Meta declined to comment.· 1 source
• Meta had previously raised $25 billion in an April bond sale and said it planned to raise $95 billion for AI initiatives through public equity offerings and an at-the-market program.· 1 source