Salesforce.com has taken a $300 million loan from Bank of America to pay for its acquisition of ExactTarget which it acquired in June.
According to Techcrunch, Salesforce completed the loan last Thursday as part of closing the deal with ExactTarget. The total payment on the loan is due in 2016 and payable in quarterly installments equal to $7.5 million beginning at the end of September.
The company’s stock hit a high in May but since that time has dropped from $48 per share to as low as $36. Today the stock is hovering around $42 per share. In March, the company issued $1.15 billion in convertible debt. The company also has $528 million in debt stemming from convertible notes it issued in 2010. Reserves will have to be kept on hand in case the notes get converted.
Techcrunch also says “It is in a market with competitors that are much larger and have deeper pockets. IBM and SAP have made larger acquisitions but also have significant working capital. Salesforce has to stretch its cash to make acquisitions while its competitors have fewer concerns in that regard.”
