Meta Plans to Raise $8.5 Billion through Five-Part Transaction: Insider Reports

05/02/2023 18:44 • Digital Disruptors • 202 views

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, the parent company of social media giant Facebook, has reportedly planned to raise $8.5 billion through a five-part transaction. According to insiders, the longest bond issue in this transaction will be a 40-year bond, yielding 192 basis points higher than treasury bond and 215 basis points lower than the original.

The Five-Part Transaction

The five-part transaction announced by Meta will help it raise $8.5 billion for corporate funding. This includes a 2-year, 3-year, 5-year, 7-year, and 40-year bond yield.

Meta’s Corporate Bond Issuance History

Meta issued its first corporate bond last year to raise $10 billion. The social media giant has reportedly been planning new funding to support its upcoming corporate ventures.

Use of New Funds

Meta plans to use the new funds to repurchase its issued common stocks, fund capital expenditures, and invest in acquisitions or other investments.

Issuance of Corporate Bonds by Other Companies

On Monday, 11 companies presented their bond issuance plans, hoping to sell their bonds ahead of Wednesday’s Federal Open Market Committee (FOMC) meeting and interest rate resolutions.

Implication of Meta’s Move

Meta’s move to raise $8.5 billion has significant implications for the company’s future operations. The funds will help finance the company’s new ventures and strengthen its financial footing.

How This Affects Investors

Investors are likely to benefit from Meta’s recent corporate bond issuance. The strength of its financial position will increase investor confidence and, thus, increase the value of issued common stocks.

Conclusion

Meta’s plan to raise $8.5 billion through a five-part transaction is indicative of its robust corporate plans. The funds will enable the company to accelerate its growth and increase its financial footing. The issuance will also benefit investors by boosting the value of issued common stocks.

FAQs

**Q1. What is Meta’s corporate bond issuance history?**
Meta issued its first corporate bond last year to raise $10 billion.
**Q2. What are the implications of Meta’s move?**
Meta’s move to raise $8.5 billion has significant implications for the company’s future operations. The funds will help finance the company’s new ventures and strengthen its financial footing.
**Q3. How will investors benefit from Meta’s recent corporate bond issuance?**
Investors are likely to benefit from Meta’s recent corporate bond issuance. The strength of its financial position will increase investor confidence and, thus, increase the value of issued common stocks.

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