May. 13 at 2:44 AM
ServiceNow attracted strong investor demand for its first U.S. dollar bond sale since 2020, despite broader concerns about AI disruption across the software industry. According to sources familiar with the deal, the company received more than
$38 billion in orders for the offering launched Tuesday, while seeking to raise
$4 billion.
The software company is issuing bonds across five maturities ranging from two to 30 years. Proceeds will be used to refinance debt tied to ServiceNow’s
$7.75 billion acquisition of cybersecurity startup Armis, including a
$4 billion term loan led by JPMorgan.
Sources said pricing on the longest-dated bond tightened during the offering process, reflecting strong investor appetite. Despite ServiceNow shares falling more than 40% this year amid a broader tech selloff, investors continue to view the company favorably due to its relatively low debt levels and long-term AI growth potential.
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