Meta Platforms has become the first mega-cap technology company to enter the US investment-grade bond market, looking to raise $7 billion in a five-part deal. The offering will be the social media giant’s second bond issue, following last year’s $10 billion offering. Meta Platforms will use the funds to finance capital expenditures, repurchase outstanding shares of its common stock, and for acquisitions or investments.
Meta Platforms looks to shore up extra cash for future bond buybacks
Following the turmoil in the financial sector, 11 companies have already come forward with bond offerings, hoping to issue debt before the Federal Open Market Committee meeting and subsequent rate decision on Wednesday. Meta Platforms is looking to raise funds to help shore up extra cash for future bond buybacks, according to Bloomberg Intelligence analyst Robert Schiffman. While the company boasts strong cash flow, it has spent recent months cutting costs and restructuring its workforce, while advertising sales rebounded in Q1.
Leave a Reply