Meta Platforms Inc. sold $10.5 billion of investment-grade bonds, its largest-ever debt sale, which will boost its cash pile as the company spends heavily on artificial intelligence (AI).
The Facebook and Instagram parent company on Wednesday offered notes in five parts for general corporate purposes, according to a person with knowledge of the matter. The longest portion of the deal, a 40-year security, yields 1.3 percentage points above Treasuries after initial discussions of around 1.55 percentage points, said the person, who asked not to be identified as the details are private.
"Meta's sale is a sign that their investment in AI is not slowing down and is likely to increase over the next couple of years," Bloomberg Intelligence analyst Robert Schiffman said in a phone interview. "Meta has an ample amount of cash, but it's a more efficient use of capital to borrow money in the bond market."
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