Salesforce Begins Bond Issue to Pay for Slack Acquisition – TheStreet

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Salesforce begins a bond offering to finance its $28 billion purchase of Slack.

Salesforce  (CRM) – Get Report has begun a bond offering to finance its $28 billion purchase of communications service Slack Technologies  (WORK) – Get Report.

It’s a six-part issue for the customer-relationship-management software provider. The longest maturity is 40 years and may yield about 1.15 percentage points over Treasuries, a source told Bloomberg.

Salesforce has an A rating from S&P Global Ratings and an A2 rating from Moody’s Investors Service.

In addition to the acquisition, proceeds of the bonds will finance sustainability projects, the source said. The takeover is expected to close by July 31.

Salesforce traded Tuesday at $244.75, up 0.18%, and has climbed 9% over the past six months.

Last month, several analysts reiterated their optimism about Salesforce, following the software provider’s first-quarter earnings.

Earlier this month, Jeff Marks, senior portfolio analyst at Action Alerts PLUS, discussed why he likes Salesforce over Zoom Video Communications  (ZM) – Get Report.

Salesforce is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells CRM? Learn more now.