Meta Platforms selling debt for first time with $10B deal

Aug. 04, 2022 3:28 PM ETMeta Platforms, Inc. (META)By: Jason Aycock, SA News Editor69 Comments

Facebook Covers Sign At Menlo Park Headquarters

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  • Meta Platforms (NASDAQ:META) is indeed jumping into the corporate bond market for the first time, with a plan to sell $10B worth in a jumbo deal.
  • The social-media giant has been one of just 18 companies in the S&P 500 without debt. But it's faced a precipitous stock decline in 2022, losing half of its value year-to-date (see a chart of Meta and social rivals vs. the market here), as well as declining cash flow.
  • The deal comes in four parts, Bloomberg reports; a 40-year portion will yield 1.65 percentage points above Treasurys, down from previous expectations for 1.75-1.8 points.
  • And orders for the bonds hit more than $30B early this afternoon, Bloomberg reports.
  • Proceeds from the sale can be used for such purposes as capital expenditures, stock buybacks, acquisitions and other investments.
  • The company's cash stockpile has fallen by $23.6B from a year ago, according to the report.

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