"ServiceNow is looking to raise approximately $4bn in a US high-grade bond sale to refinance debt taken on to fund its acquisition of cybersecurity firm Armis Security, Bloomberg reported on Monday."
"The trade will replace a $4bn unsecured term loan that ServiceNow drew down in 2025 to support the $7.75bn Armis purchase. The term loan matures on 16 October 2026."
"The bond sale extends a pattern of high-grade enterprise-software issuers tapping the dollar bond market to fund acquisition and AI-infrastructure spending. ServiceNow has been adding AI-product revenue at a rapid clip; the company's Now Assist AI platform is projected to exceed $1.5bn in annual contract value by year-end."
"Replacing a short-dated term loan with long-duration bond issuance lowers ServiceNow's interest expense, extends the maturity profile, and frees up bank-facility capacity. ServiceNow has not disclosed the tranching of the new trade, the indicative spreads, or the targeted average tenor."
ServiceNow is seeking about $4bn through a US high-grade bond sale to refinance debt used for its acquisition of Armis Security. Investor calls were organized by JPMorgan Chase, Wells Fargo, Barclays, and Citigroup. The bond trade will replace a $4bn unsecured term loan drawn in 2025, which matures on 16 October 2026. The refinancing is expected to lower interest expense, extend the maturity profile, and free bank-facility capacity. The Armis deal supports ServiceNow’s workflow automation and expansion into security operations. ServiceNow reported Q1 2026 revenue up 22% year-on-year, with subscription revenue ahead of expectations, and it has provided updates on Armis integration and early uptake of agentic AI features.
Read at TNW | Business
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