Salesforce Funds Massive Share Buyback with Record Debt Offering

In a landmark move for the software industry, Salesforce has secured one of the largest debt financings in the sector’s history, with the proceeds earmarked exclusively for repurchasing its own stock. The company placed bonds worth $25 billion on March 13, 2026, to fund a share repurchase program of precisely the same size.

A Strategic Financial Leverage Play

The capital raise, managed by a syndicate including J.P. Morgan, Bank of America, Barclays, Citigroup, and Wells Fargo, was structured across eight tranches with maturities extending to 2066. Coupons on the debt range from 4.5% for the shortest-term notes to 6.7% for the 40-year securities. After accounting for underwriting fees, net proceeds of approximately $24.88 billion were generated, all of which is dedicated to the buyback initiative.

Concurrently, Salesforce arranged a separate, unsecured $6 billion credit facility with a five-year term. This loan is solely intended to refinance existing obligations, ensuring the bond proceeds remain entirely untouched for the equity repurchase plan.

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Immediate Execution with Deferred Settlement

The buyback is being executed in two distinct phases. A delivery of roughly 80% of the targeted shares is scheduled for March 16, 2026—effectively the next trading day. The final settlement, which will determine the exact purchase price based on average trading values, is set for the fourth quarter of 2026.

This accelerated timeline means a near-immediate reduction in the share count, providing direct support for the stock’s valuation. However, the strategy significantly increases the company’s debt burden, locking in substantial, long-term interest payments that will weigh on its cost structure. This constitutes a major balance sheet gamble with a long horizon, particularly during an AI era that demands heavy investment in new infrastructure from software firms. Market reaction has been measured thus far, with the stock currently trading about 19% below its 200-day moving average.