Adobe stock price target raised to $280 from $245 at Canaccord Genuity

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Salesforce is tapping corporate bond market, expected to issue about $2.5 billion in two-tranche deal

Enterprise software company Salesforce.com Inc. is tapping the corporate bond market with its first pure bond deal to raise some of the funds needed to finance its $6.5 billion acquisition of MuleSoft, according to research firm CreditSights. The company will offer two tranches of senior unsecured notes of about $2.5 billion in size, according to CreditSights. “We expect strong demand for the new issues of this high-quality credit amidst the backdrop of limited supply in the investment-grade tech sector post tax reform,” wrote analyst Jordan Chalfin. “While the competitive position, growth and credit metrics are strong, we would want a spread pickup to Oracle and Adobe to participate in the deal.” Oracle’s 10-year bonds, the 3.250% notes that mature in November of 2027, were last trading at 79 basis points over comparable Treasurys, according to MarketAxess. Adobe’s 10-years, the 3.250% notes due February of 2025, were trading at 57 basis points over Treasurys, according to MarketAxess. On the equity side, Salesforce shares were flat, but have gained about 40% in the last 12 months, while the S&P 500 has gained 13%.

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