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 itself is conventional. Replacing a short-dated term loan with long-duration bond issuance lowers ServiceNow’s interest expense, extends the maturity profile, and frees up bank-facility capacity. ServiceNow has not disclosed the tranching of the new trade, the indicative spreads, or the targeted average tenor.
ServiceNow closed the Armis acquisition earlier this year. Armis specialises in cybersecurity for connected devices and operational technology systems; the deal was framed as complementary to ServiceNow’s broader workflow-automation platform and as a vehicle for the company’s expansion into the security-operations market.
Q1 2026 results showed ServiceNow revenue up 22% year-on-year, with subscription revenue running ahead of analyst expectations. The company has used the recent quarterly cadence to update investors on the integration of Armis and on the early uptake of agentic AI features built into its core platform.
Among software-sector issuers, ServiceNow has been one of the more disciplined users of debt. Total debt remains modest relative to free cash flow, and the company maintains investment-grade ratings comfortably above the BBB threshold.
The Armis acquisition was the first deal at scale that required a term-loan facility; the bond refinancing is the planned permanent-financing step.
Pricing on the new bond is expected later this week. ServiceNow has not disclosed the precise maturity buckets but is reported to be marketing a multi-tranche deal spanning short-to-long-dated tenors. The company has not commented on the bond sale beyond the standard disclosure.
