Meta closes preferred offering and lines up forward sale of 40 million shares

Meta closed an offering of 250 million depositary shares, each representing a 1/20th interest in 6.50% Series A mandatory convertible preferred stock with a $1,000 liquidation preference per share, with Morgan Stanley and Goldman Sachs serving as underwriters. Meta also entered forward sale agreements with Morgan Stanley Capital Services LLC and Goldman Sachs & Co. covering 40 million Class A shares at an initial forward price of $622.91875 per share; Meta receives no proceeds initially and may settle the agreements through November 19, 2027. The common-stock underwriters have an option for 6 million additional shares, and the transactions could increase Meta’s shares outstanding and dilute existing holders when settled or when the preferred stock converts.