Meta Platforms, which owns Facebook, said on Thursday it will make its first bond offering, at a time when the social media company is making significant investments to fund its metaverse projects.
The company did not disclose the size of the offering, but said it would use the proceeds for capital expenditures, share buybacks, acquisitions or investments.
Among the technology companies with the highest market value (megacap), Meta is the only one that has no debts in its accounting records.
The company’s free cash flow is decreasing as it moves forward with its metaverse plans, which led to its 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 previous quarter.
Last week, the company also reported a drop in quarterly revenue for the first time.
The company’s chief financial officer, Dave Wehner, said on a conference call following the earnings call that the company had a “substantial amount” in its buyback program and expects to continue buybacks as part of its capital allocation strategy.
The company received an ‘A1’ rating from Moody’s and an ‘AA-‘ and ‘stable’ outlook from S&P.
Source: CNN Brasil
