Meta seeks at least $20 billion in cross-border bond sale for AI infrastructure

Meta is seeking to raise between $20 billion and $25 billion in a bond sale, with pricing expected on Tuesday afternoon, as it expands spending on AI infrastructure, models and services. CNBC reported, citing people familiar with the matter, that the offering is expected to be two-thirds U.S. dollars and one-third euros. Bloomberg News first reported the plans. Meta declined to comment, according to CNBC.

Days earlier, S&P Global Ratings revised Meta's outlook from AA- stable to AA- negative, citing "uncertainty" about its heavy capital expenditure and negative free cash flow. The rating itself was not cut. Only the outlook changed to negative. In its third-quarter earnings report last month, Meta said full-year capex would be between $135 billion and $145 billion, a $5 billion increase to the low end of its previous guidance. It also posted negative free cash flow of $2.12 billion for the quarter, a figure CNBC noted put it alongside Alphabet and Amazon.

The bond sale is one piece of a larger financing push. CNBC wrote that Meta previously raised $25 billion in an April bond sale. Last week, Meta said it plans to raise $95 billion to fund its AI initiatives. Of that, Meta intends to first raise $35 billion through underwritten public equity offerings, with another $60 billion through an at-the-market program.

CNBC also reported that Meta's stock rose 2.7% on Tuesday, after falling in 12 of the prior 14 trading sessions and closing October with its worst month in four years. The sources cited by CNBC asked not to be named because the details are private. As a result, the final size, currency split and pricing of the deal were not yet confirmed in the reporting.