Zuckerberg asks for money for the first time in a Nasdaq given over to fixed income

The big tech companies nasdaq they do not tend to pivot as much towards the fixed income market as other companies and institutions.

But when they do, they can leave deals as juicy as the $1 billion in green debt issued by amazon in May 2021, or the 10,000 million obtained by Alphabetthe parent company of Google, in August 2020.

This week, two other companies from the select group of big tech in the nasdaq who looked to the fixed income market in search of new financing.

did it first Manzanawho went to the bank to raise $5.5 billion, and subsequently did so Goalthe parent company of Facebookby Mark Zuckerberg.

During a call with investors, it announced the first bond issue in its history.

Apple closes another Nasdaq hit in fixed income

Apple’s dalliances with the fixed income market are not extremely recurrentbut not a rarity either. In each of these forays, the leading company in the mobile phone industry achieved resounding success.

With outstanding issues of more than $10 billion, Apple continues to have an AA+ credit rating from Standard & Poor’s, which is supported by its strong financial muscle.

So much so, in fact, that Moody’s updated on December 21 the note assigned to Apple’s debt, raising it from the Aa1 level to convert it at Aaa, which in educational terms could be compared to raising its rating from 9.5 to 10.

This week, Manzana reported to SEQ of the launch of four bonds with different maturity dates, which, according to information provided by Bloomberg, allowed it to raise 5,500 million dollars.

According to this same statement, the Californian company will use the net income obtained with this debt issue for “general corporate purposes”, such as the repurchase of ordinary shares, the payment of dividends or the amortization of debt.

Although the interest paid on each of these coupons did not transcend, what did was the involvement of Goldman Sachs, BofA Securities, and J.P. Morgan as global coordinators of the offer, as well as the reaction of the agencies to the new fixed income instruments.

In the case of S&Passigned an AA+ rating justified on Apple’s strong revenue in the fiscal third quarter, and confidence that the company will maintain its goal of a neutral net cash position over time.

Facebook debuts in the bond issue

If Apple already knew very well the way of financing through the issuance of debt, Facebook premiered in it after many years avoiding it.

The social networking company led by Zuckerberg, therefore, ceased to be this Thursday one of the few companies in the S&P 500 that has no debt, by selling 10,000 million dollars in the first corporate bond operation in its history.

An operation that came at a bad time for the company in terms of its cash flow and the price of its shares, but that can help it achieve its goals of conquering the metaverse.

“Meta’s financial strength is considerable, although slightly lower than a year ago.”

Which suggests that its goal of raising debt capital is to provide greater financial flexibility as buybacks and investment spending grow,” they explained from Bloomberg Intelligence to finance.com.

According to the analysts of the North American firm, therefore, Goal could use proceeds from bond sales to significantly bolster share buybacks.

But also to hire and retain talented employees, a scourge that has been affecting his business in the last year, due to accusations of bad practices made by informants such as Frances Hagen.

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