Salesforce Launches Record $25B Bond Sale to Fund Aggressive Stock Buyback
Salesforce priced its largest-ever bond offering at $25 billion, with all proceeds earmarked for share repurchases through accelerated buyback agreements. The move signals confidence in its equity valuation despite weaker-than-expected investor demand for the debt issuance.
The 10-year tranche priced approximately 135 basis points above Treasuries, reflecting tighter credit conditions than during its 2021 $9 billion debt raise for the Slack acquisition. Truist and Stifel maintained buy ratings while trimming price targets, as shares gained 3.57% on the announcement.
J.P. Morgan, Bank of America, and other underwriters will complete the offering by March 13, with initial share delivery commencing three days later. This capital allocation strategy prioritizes shareholder returns over M&A or product development expenditures.
