Snowflake Plans $3.5 Billion Convertible-Note Offering
By Connor Hart
Snowflake said it intends to offer $3.5 billion of convertible senior notes in a private placement to qualified institutional buyers.
The cloud-data company on Monday said it plans to offer $1.3 billion of convertible notes due in 2029 and $2.2 billion of convertible notes due in 2031. Snowflake will also grant the initial purchasers options to buy up to an additional $200 million of the 2029 notes and $300 million of the 2031 notes.
The notes will bear no regular interest, and their principal amount will not accrete, Snowflake said. The initial conversion rate and other terms of each series of notes will be determined when the offering is priced.
Snowflake plans to use part of the proceeds to enter into capped-call transactions designed to reduce potential dilution from the conversion of the new notes. The company also expects to use proceeds to repurchase a portion of its outstanding 0% convertible senior notes due 2027 and for general corporate purposes.
Shares fell 3.6%, to $324, in premarket trading.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
September 28, 2026 08:13 ET (12:13 GMT)
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