Loan & DebtOct 2, 2026, 04:12 PM
Snowflake Prices $3.75B Convertible Notes Offering
AI Summary
Snowflake Inc. announced the pricing of an upsized private offering of $3.75 billion in aggregate principal amount of 0.00% Convertible Senior Notes due 2029 and 2031. The company also granted initial purchasers an option to purchase an additional $550 million in notes. Net proceeds are expected to be approximately $3.70 billion, intended for capped call transactions, repurchasing existing 2027 convertible notes, and general corporate purposes. The notes are convertible under specific conditions, with initial conversion prices representing significant premiums to the stock price at the time of pricing.
Key Highlights
- Snowflake priced an upsized private offering of $2.0B of 0.00% Convertible Senior Notes due 2029 and $1.75B of 0.00% Convertible Senior Notes due 2031.
- The total principal amount of the offering was $3.75 billion, with an option for initial purchasers to buy an additional $550 million.
- Net proceeds are estimated at $3.70 billion, to be used for capped call transactions, repurchase of 2027 convertible notes, and general corporate purposes.
- Initial conversion price for 2029 notes is approx. $500.38 per share (52.5% premium), and for 2031 notes is approx. $483.98 per share (47.5% premium).
- Snowflake expects to use approx. $548.3 million of proceeds to repurchase 2027 convertible senior notes.
- Capped call transactions are expected to reduce potential dilution and offset cash payments upon conversion.
Price Impact
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