Meta lines up $20B to $25B bond sale as AI spending ramps

The sale and how it is structured

Meta is marketing a bond deal sized between $20 billion and $25 billion, slated for Tuesday. People familiar with the transaction said the currency mix should be about two parts U.S. dollars to one part euros, and that final pricing is expected in the afternoon. They requested anonymity because the details are private.

Meta declined to comment, and Bloomberg News first revealed the plan. The timing comes as the company is accelerating spending on artificial intelligence infrastructure alongside AI models and services.

Ratings move and the spending picture

In the days leading up to the sale, S&P Global Ratings moved Meta's outlook to AA- negative from AA- stable, pointing to "uncertainty" stemming from large capital expenditures as well as a shortfall in free cash flow. Last month's third quarter report said the company now expects full-year capex between $135 billion and $145 billion, raising the bottom end of its earlier range by $5 billion.

In the latest quarter, Meta logged free cash flow at negative $2.12 billion, and Alphabet and Amazon likewise recorded negative numbers.

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How it fits with Meta's funding plans

The company tapped credit markets in April with a $25 billion bond sale. Last week it outlined plans to raise $95 billion to support its AI initiatives, starting with $35 billion via underwritten public equity offerings and another $60 billion through an at-the-market program.

Market reaction and what to watch

After falling in 12 of the previous 14 sessions, Meta's shares climbed 2.7% on Tuesday, and the company still ended October with its weakest month in four years. For your portfolio, the key near term tells are where the new bonds price, how the currency split lands, and how the planned equity raises interact with liquidity and share performance.

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