Meta Plans $12.5B Mandatory Convertible Preferred Offering With 6-6.5% Dividend

The structure is the story here: a mandatory conversion removes the perpetual overhang of traditional preferred, while the 6–6.5% yield and double-digit conversion premium set a fairly rich cost of capital for a mega-cap balance sheet. That combination reads as a financing choice shaped by current rate and equity-valuation conditions rather than distress, and it broadens the capital-structure toolkit available to large crypto-adjacent tech issuers weighing convertible-style raises. The pricing after Monday's close is the immediate checkpoint, since the final yield and premium will show how much demand the structure drew.