Investors placed as much as $58B in orders for the $15B U.S. dollar portion of Meta’s latest bond sale, providing roughly four times the coverage for the five tranches of debt. The social media company is preparing to complement the U.S. sale with its first euro-denominated offering, bringing the total targeted raise to between $20B and $25B. While demand remained high, Meta’s borrowing costs have increased; the 30 year bonds in the current offering are priced at about 2.2 percentage points above U.S. Treasuries, which is 0.9 points wider than comparable notes the company issued in April.
The funding push comes as S&P Global Ratings revised Meta’s credit outlook from stable to negative, citing risks that AI capital expenditures could top $225B in 2027 and result in a $71B free operating cash flow deficit that year. The agency affirmed Meta’s AA- rating but warned that the company’s leverage could exceed 1.0x by 2027. The debt offering is part of a larger capital-raising effort totaling nearly $120B, which includes a $60B at-the-market program and roughly $37.5B in common and preferred stock sales.