Facebook parent Meta Platforms said Thursday it would make its first-ever bond offering, at a time when the social media company is making massive investments to fund its metaverse projects.
Meta did not disclose the size of the offering, but said it would use the proceeds for capital expenditures, share buybacks, acquisitions or investments.
Of the high-flying mega-cap tech companies, Meta is the only one without debt.
The company’s free cash flow has been exhausted as it moves forward with its metaverse plans, which led to the name change from Facebook to Meta Platforms last year.
In the second quarter ended June 30, Meta had $4.45 billion in free cash flow, compared to $8.51 billion a year ago and $8.53 billion in the prior quarter. Last week, the company also reported a decline in quarterly revenue for the first time.
Chief Financial Officer Dave Wehner said in a post-profit conference call that the company had a “substantial amount” in its buyback program and expects to continue with buybacks as part of its capital allocation strategy.
The company received an ‘A1’ rating from Moody’s and an ‘AA rating’ and a stable outlook from S&P.
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