ServiceNow plans to issue a $4 billion bond to refinance the debt from its acquisition of Armis.

      ServiceNow aims to raise around $4 billion through a US high-grade bond sale to refinance debt incurred for its acquisition of cybersecurity firm Armis Security, according to a Bloomberg report on Monday.

      JPMorgan Chase, Wells Fargo, Barclays, and Citigroup conducted investor calls on Monday as part of the issuance process. This bond issuance will replace a $4 billion unsecured term loan that ServiceNow secured in 2025 to finance the $7.75 billion purchase of Armis, which is set to mature on October 16, 2026.

      This bond sale continues the trend of high-grade enterprise-software companies utilizing the dollar bond market to finance acquisitions and AI-infrastructure investments. ServiceNow has been rapidly increasing its AI product revenues, with the Now Assist AI platform expected to surpass $1.5 billion in annual contract value by the end of the year. Analyst projections indicate that AI-related products will comprise more than 30% of total recurring revenue by 2030.

      The refinancing strategy is typical; substituting a short-term loan with long-term bond issuance will lower ServiceNow’s interest costs, extend the maturity profile, and enhance bank-facility capacity. ServiceNow has not revealed details about the tranching of the new offering, the indicative spreads, or the intended average tenor.

      ServiceNow finalized the Armis acquisition earlier this year. Armis specializes in cybersecurity for connected devices and operational technology systems; the transaction was viewed as a complement to ServiceNow’s wider workflow-automation platform and a means for the company to expand into the security-operations sector.

      In Q1 2026, ServiceNow reported a 22% year-on-year increase in revenue, with subscription revenue exceeding analyst expectations. The company has recently updated investors regarding the integration of Armis and the early adoption of agentic AI features within its core platform.

      Among software-sector companies, ServiceNow has demonstrated disciplined debt usage. Its total debt remains relatively low compared to free cash flow, and the company holds investment-grade ratings well above the BBB level.

      The acquisition of Armis was the first large-scale deal necessitating a term-loan facility, and this bond refinancing represents the intended permanent financing move.

      Pricing details for the new bond are anticipated later this week. Although ServiceNow has not specified the exact maturity ranges, it is said to be marketing a multi-tranche deal covering short to long-dated tenors. The company has not provided further comments on the bond sale beyond the standard disclosures.