TLDR
Meta stock climbs 2.68% to $621.29 after rebounding from the $600 to $605 range
Meta closes a $15 billion bond sale, with coupons ranging from 5.85% to 7.50%
Meta’s forward stock offering grows to 46 million shares at $625 per share
Meta expects about $28.7 billion before fees, with cash due at share settlement
Meta projects up to $145 billion in 2026 capex as it expands its AI infrastructure
Meta Platforms (META) shares climbed 2.68% to $621.29 as the company completed a $15 billion bond sale on Thursday. The stock gained $16.21 after rebounding from the $600 to $605 range. Meta also expanded its forward stock offering to 46 million shares.
Meta Platforms, Inc., META
Meta Sells Five Series of Senior Notes
Meta sold five series of senior notes with maturities from 2031 to 2056. The notes carry coupons ranging from 5.85% to 7.50%, with longer maturities carrying higher rates. The $4 billion tranche due in 2036 was the largest, and it pays a coupon of 6.55% annually.
The 2031 and 2033 tranches each totaled $3.25 billion, with coupons of 5.85% and 6.25%, respectively. Meta also sold $1.75 billion of notes due in 2046 at 7.35%. The $2.75 billion tranche due in 2056 carries the highest coupon, at 7.50%.
The new coupons exceeded the 4.20% to 5.75% range on Meta’s $30 billion bond sale in November 2025. Moody’s assigned the new notes an Aa3 rating and maintained a stable outlook. Meanwhile, S&P rated the notes AA- and maintained a negative outlook.
Forward Stock Sale Expands
Underwriters exercised their full option to buy six million additional Class A shares in the concurrent offering. Meta priced the shares at $625 each and set the initial forward price at about $622.92. It estimated proceeds of $28.7 billion before expenses.
Meta will receive the forward proceeds upon delivery of the shares. The company can choose settlement dates through November 19, 2027. It intends to use the proceeds for general corporate purposes and expects no cash from the initial sale by forward purchasers.
Meta also priced mandatory convertible preferred stock with a 6.50% rate. In addition, the company proposed a roughly $60 billion program to sell Class C shares at market prices. Meta expects the proposed program to start in the first quarter of 2027 or later.
AI Expansion Drives Capital Spending
Meta expects 2026 capital spending of $135 billion to $145 billion as it expands AI infrastructure and computing capacity. Its funding plan combines debt and equity with operating cash flow and strategic partnerships. The latest bond sale adds to its existing borrowings.
Third-quarter capital spending reached $34.91 billion, including principal payments on finance leases. Over the same period, Meta generated $32.79 billion in operating cash flow and recorded negative free cash flow of $2.12 billion. Long-term debt stood at $80.92 billion on September 30.
Meta ended 2025 with $58.74 billion in long-term debt. A special committee reviewed the financing plan and identified a risk to Meta’s credit ratings from relying on debt alone. The company included equity alongside borrowing in its plan to fund expansion.
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