Salesforce Prices Record $25B Debt for Share Repurchase
Salesforce announced it has priced a $25 billion senior notes offering, the largest debt issuance in the company's history. The cloud software giant plans to deploy the entire net proceeds into Accelerated Share Repurchase (ASR) agreements with several financial institutions. The prepayment and initial delivery of shares under the ASR are expected to occur on March 16, 2026, which will immediately begin reducing the number of outstanding shares. The deal, arranged by a consortium of banks including JPMorgan Chase, Bank of America, and Citigroup, represents one of the largest corporate borrowings in the technology sector this year.
CRM Stock Gains 3% as Shareholder Returns Take Center Stage
The market responded favorably to the aggressive capital return plan, sending Salesforce shares up 3% to close at $200 on Thursday. The stock reached an intraday high of $204.86, strongly outperforming competitors ServiceNow and Oracle, which saw declines of 0.95% and 0.83%, respectively. This move is a component of a larger shareholder return initiative announced in February, which included a $50 billion total stock repurchase authorization and a 5.8% dividend increase. The strategy is seen as a direct response to pressure from activist investors who have pushed the company for greater capital discipline and improved operating margins.
Tech Giants Leverage Debt for AI and Buybacks
Salesforce's massive debt offering places it among a growing list of technology titans tapping credit markets in 2026. Companies like Amazon, Meta, and Alphabet have recently raised tens of billions in debt to fund a dual strategy: investing heavily in AI infrastructure while simultaneously returning significant capital to shareholders. Prior to this offering, Salesforce held $8.50 billion in outstanding debt, with its last major borrowing being an $8 billion raise in 2021 to finance its acquisition of Slack. This latest capital raise underscores management's confidence and its commitment to increasing earnings per share and overall shareholder value.
Edgen Stock·Mar 16 2026, 13:44
