ServiceNow lines up $4bn bond sale to refinance Armis acquisition debt

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.

JPMorgan Chase, Wells Fargo, Barclays and Citigroup organised investor calls on Monday ahead of the issuance. 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. AI-related products are expected to account for more than 30% of total recurring revenue by 2030, according to analyst estimates.

The refinancing trade ...