Meta: a very first bond issue… of 10 billion dollars for the ex-Facebook











Photo credit © Reuters


(Boursier.com) — Meta , ex-Facebook, known until then for its financial discipline and its absence of indebtedness, launches out on the bond market with a massive emission. Bloomberg says the group sold $10 billion worth of bonds in a four-tranche deal. The agency cites people familiar with the matter. The longest portion of the offer is for a 40-year maturity at a rate of 1.65% higher than Treasury bills. The offer was a great success according to Bloomberg, with demand exceeding $30 billion. Proceeds from bond sales can be used for purposes such as capital expenditures, stock buybacks and acquisitions or investments, says Bloomberg, which believes the company may be more likely to use the money to significantly bolster its stock buybacks, hire and retain talented employees, rather than increase spending on metaverse investments. Meta used its cash to buy back shares, including $5.1 billion in the second quarter of this year, and had $24.3 billion available for buybacks as of June 30, according to its earnings release last week.


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