Meta Platforms, the parent company of Facebook, has raised funds to the tune of $10 billion from the market. It is the company’s first-ever fundraising through a bond offering. The proceeds are likely to fund share buybacks and investments to revamp its business.
The Meta Platform’s fundraising exercise comes at a time when the share price has fallen over 50 percent in the last 12 months and the cash position of the company is also dwindling. Meta recently reported its Q1 year-on-year quarterly revenue decline, citing uncertainty in the digital advertising business, which has driven its growth for years.
On August 4, 2022, Meta Platforms, Inc, the parent company of Facebook, commenced 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 were offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, and outside the United States, only to non-U.S. persons pursuant to Regulation S under the Securities Act.
Facebook Bonds Interest Payments
The Notes bear interest at a rate of 3.500% per year with respect to the 2027 Notes, 3.850% per year with respect to the 2032 Notes, 4.450% per year with respect to the 2052 Notes, and 4.650% per year with respect to the 2062 Notes, respectively.
Interest on the Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2023. The Company will pay interest to those persons who were holders of record on February 1 or August 1 immediately preceding each interest payment date.
The Notes are unsecured obligations of the Company. Each series of Notes will be redeemable as a whole or in part, at the Company’s option at any time and from time to time prior to the applicable Par Call Date.