Meta to Raise $8.5 Billion via 5 Part Transaction: All You Need to Know

According to reports, insiders have revealed that Meta plans to raise $8.5 billion through a five part transaction. The longest bond issue this time is the 40 year bond, whose yiel

Meta to Raise $8.5 Billion via 5 Part Transaction: All You Need to Know

According to reports, insiders have revealed that Meta plans to raise $8.5 billion through a five part transaction. The longest bond issue this time is the 40 year bond, whose yield will be 192 basis points higher than treasury bond, and 215 basis points lower than the original. On Monday, 11 companies have proposed bond issuance plans, and issuers hope to sell bonds before Wednesday’s Federal Open Market Committee (FOMC) meeting and subsequent interest rate resolutions. Meta issued its first corporate bond last year to raise $10 billion. The person familiar with the matter stated that Meta plans to use the new funds to fund capital expenditures, repurchase issued common stocks, and use them for acquisitions or investments.

Meta to raise $8.5 billion in the second round of bond issuance

Meta is reportedly planning to raise a massive $8.5 billion through a five-part transaction, as revealed by insiders. The company’s new 40-year bond issue is expected to yield 192 basis points higher than the Treasury bond, and 215 basis points lower than the original. Eleven companies have already proposed bond issuance plans, hoping to sell their bonds before the Federal Open Market Committee (FOMC) meeting, set to take place on Wednesday.
In this article, we will dive deep into Meta’s latest development and provide you with all the details you need to know.

Understanding Meta’s 5 Part Transaction

According to various reports, Meta is planning to raise $8.5 billion via a five-part transaction. The company’s longest bond issue this time is the 40-year bond, which will yield 192 basis points higher than the Treasury bond and 215 basis points lower than the original. This indicates that the new bond will be much more affordable for Meta’s investors.

Meta’s Plans for the New Funds

So, what does Meta plan to do with the $8.5 billion raised from the five part transaction? According to a person familiar with the matter, the company plans to use the funds for capital expenditures, as well as repurchasing issued common stocks. Additionally, the funds will be used for acquisitions or investments, enabling the company to grow and expand further.

Meta’s Past Corporate Bond Issuance

Last year, Meta issued its first corporate bond to raise $10 billion. This was to help fund the company’s acquisition of Giphy. With the new funds raised through the five-part transaction, Meta will be able to continue making strategic investments and expand its offerings.

Bond Issuers Look to Sell Bonds Before the Next FOMC Meeting

A total of 11 companies have already proposed bond issuance plans, hoping to sell their bonds before the FOMC meeting set to take place on Wednesday. With the prospect of potential interest rate resolutions coming, many bond issuers are looking to sell their bonds quickly and take advantage of the current market.

Conclusion

Meta’s five-part transaction to raise $8.5 billion is a significant development for the company and its investors. With its new 40-year bond issue, the company is offering a more affordable bond that is sure to be popular with investors. Meta’s plans to use the funds raised to invest in the company’s growth and expansion is also promising news for those invested in the company.

FAQs

Q1: What is the company’s longest bond issue in the five-part transaction, and how does it compare to the original bond?
A: The 40-year bond is the longest bond issue, and it yields 192 basis points higher than the Treasury bond and 215 basis points lower than the original.
Q2: What does Meta plan to do with the new funds raised from the five-part transaction?
A: Meta plans to use the funds for capital expenditures, repurchasing issued common stocks, and for acquisitions or investments.
Q3: How many companies have proposed bond issuance plans, and why?
A: Eleven companies have proposed bond issuance plans, with many looking to sell bonds before the FOMC meeting and the potential interest rate resolutions.

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