Meta tapping bond market for first time — Bloomberg

Social media giant Meta Platforms is preparing its first step into the bond market — a four-part offering that reportedly will raise $8 billion to $10 billion, according to Bloomberg. The parent of Facebook and Instagram is just the latest tech concern to tap the credit market.

On Aug. 1, Apple priced a $5.5 billion deal, with maturities ranging from 2032 to 2052. The largest slice was $1.75 billion in a 2052 bond with a 3.95% coupon, pricing with a 105 basis point spread over the relevant Treasury security. As of Wednesday, the spread had widened to 108 basis points. On the other three issues, spreads increased modestly by 1 to 4 basis points.

A few months ago, Amazon.com completed a seven-part, $12.8 billion bond issuance, with maturities ranging from 2024 to 2062. The two largest issues were securities with 2032 and 2052 maturities, with each having $2.5 billion outstanding. Spreads range from 6 basis points for the 2025 maturity to 124 basis points for the bond due in 2062.

Looking at Amazon.com's 3.95% security due in 2052, Wellington Management Group owns about 2.7% followed by Vanguard Group's 1.9% and Prudential Financial's 1.8%.