Meta Platforms, Facebook’s parent company, has raised $10 billion in the market. This is the company’s first ever fundraising through a bond issue. Proceeds are expected to fund share buybacks and investments to revamp its business.
The Meta Platform’s fundraising exercise comes at a time when the stock price has fallen more than 50% in the past 12 months and the company’s cash is also shrinking. Meta recently reported lower quarterly revenue in the first quarter, citing uncertainty in the digital advertising industry, which has fueled its growth for years.
On August 4, 2022, Meta Platforms, Inc, the parent company of Facebook, launched an offering of senior unsecured notes and on August 9, 2022, these Facebook corporate bonds were issued:
$2.75 billion aggregate principal amount of its 3.500% senior unsecured notes due 2027,
$3.00 billion aggregate principal amount of its 3.850% Senior Unsecured Notes due 2032,
$2.75 billion aggregate principal amount of its 4.450% senior unsecured notes due 2052
$1.50 billion aggregate principal amount of its 4.650% senior unsecured notes due 2062.
The Notes have been offered and sold only to persons reasonably considered to be qualified institutional purchasers under Rule 144A of the Securities Act of 1933, and outside the United States only to non-U.S. persons pursuant to Regulation S of the Securities Act.
Interest payments on Facebook bonds
The Notes bear interest at the rate of 3.500% per annum with respect to the 2027 Notes, 3.850% per annum with respect to the 2032 Notes, 4.450% per annum with respect to the 2052 Notes and 4.650% per annum. in respect of tickets 2062 Tickets, respectively.
Interest on the Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing February 15, 2023. The Company will pay interest to persons who were holders of record on February 1 or August 1 immediately preceding each date. payment of interest.
The Notes are unsecured obligations of the Company. Each series of Notes will be redeemable in whole or in part, at the Corporation’s option, at any time and from time to time prior to the applicable Par Redemption Date.