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Big Tech returns to the bond market: Microsoft, Oracle, Meta and Alphabet price more than US$50 billion of AI-era debt in six days
What changed
Bloomberg reports that Big Tech companies are borrowing heavily again after almost three months away from the US bond market. Term sheets filed with the SEC show Microsoft priced US$25 billion of notes on 29 October (Bloomberg says its first US offering since 2017), Oracle US$10 billion of notes alongside a concurrent share sale on 2 November, Meta US$15 billion of notes on 3 November with coupons from 5.85% to 7.50%, and Alphabet €6 billion in euros on 2 November. Meta launched its first euro bond sale on 4 November, which had not been priced at the time of writing. Bloomberg reports that Oracle's longest notes priced 3.35 percentage points over Treasuries and that companies have borrowed more than US$330 billion from US high-grade bonds to fund AI investments this year, by its count. Totals are our sum of the filed term sheets.
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Read the original: Bloomberg via The Star, with SEC term sheets: Big Tech returns to the bond market: Microsoft, Oracle, Meta and Alphabet price more than US$50 billion of AI-era debt in six days (opens in a new tab)
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