Salesforce priced its largest-ever debt offering at $25 billion to fund an accelerated share repurchase program. The offering of senior notes is expected to close around March 13, 2026. This issuance supports a previously announced $50 billion buyback authorization.
Investors met the deal with muted demand, forcing Salesforce to offer significant concessions. The company sold the debt at a higher borrowing cost than initially anticipated.
Investor apprehension follows a credit rating downgrade from Moody’s and a negative outlook from S&P. Rating agencies cited the shift toward large debt-funded buybacks as a significant change in financial policy. Analysts also expressed concerns regarding the long-term impact of artificial intelligence on the company's core business.