Meta is raising between $20 billion and $25 billion through a bond sale on Tuesday as the company increases spending on artificial intelligence infrastructure, models, and services. The debt offering consists of two-thirds U.S. dollars and one-third euros, with final pricing expected Tuesday afternoon.
The bond sale follows S&P Global Ratings' downgrade of Meta's outlook from AA- stable to AA- negative. S&P cited "uncertainty" about the company's large capital expenditures and negative free cash flow.
Meta disclosed in its third-quarter earnings that full-year capital spending will reach between $135 billion and $145 billion, a $5 billion increase to the low end of previous guidance. The company posted negative free cash flow of $2.12 billion in the latest quarter.
Meta raised $25 billion in an April bond sale and announced last week plans to raise $95 billion total to fund AI initiatives. That includes $35 billion through underwritten public equity offerings and $60 billion through an at-the-market program.
Meta's stock gained 2.7% on Tuesday, after dropping in 12 of the prior 14 trading sessions and posting its worst month in four years during October.