Snowflake Launches $3.5B Convertible Notes Offering to Refinance Debt and Fund Buybacks
SNOW has more than doubled off its 52-week low of $118.3.
Summary
Snowflake priced a $3.75B private placement of 0.00% convertible senior notes, upsized from $3.5B, split between $2.0B due 2029 and $1.75B due 2031, with initial conversion prices of $500.38 for the 2029 notes and $483.98 for the 2031 notes. Initial purchasers were granted options for an additional $300M of 2029 notes and $250M of 2031 notes, which would bring net proceeds to an estimated $4.24B if fully purchased. Net proceeds from the base offering are estimated at $3.70B, with $548.3M to repurchase 2027 notes and $383.5M for capped calls. The 2029 notes mature October 15, 2029, and the 2031 notes mature October 15, 2031. Proceeds will fund capped call transactions, repurchase a portion of its existing 2027 notes, and support general corporate purposes including stock buybacks and potential acquisitions. The zero-coupon structure and capped calls are designed to minimize dilution while providing low-cost capital. This follows strong Q2 results and a raised outlook, but the offering introduces potential near-term stock volatility from hedging activity.
Updated with a Seeking Alpha report · What changed
Updates
· SEC 8-K — Snowflake completed the offering on September 28, 2026, with net proceeds of approximately $3.70 billion, and capped call transactions at a cap price of $820.30 per share.
· Seeking Alpha — Initial purchasers were granted options for an additional $300M of 2029 notes and $250M of 2031 notes.
- The 2029 notes mature October 15, 2029, and the 2031 notes mature October 15, 2031.
- Net proceeds are estimated at $4.24B if the additional notes are fully purchased.
· BusinessWire — Snowflake priced the offering at $3.75B, upsized from $3.5B, and set its tranche sizes and conversion prices.
- The notes are $2.0B due 2029 and $1.75B due 2031.
- Initial conversion prices are $500.38 for 2029 notes and $483.98 for 2031 notes.
- Net proceeds are estimated at $3.70B, with $548.3M to repurchase 2027 notes and $383.5M for capped calls.
At the time of this announcement, SNOW was trading at $322.17 on NYSE in the Technology sector, with a market capitalization of approximately $118.5B. The 52-week trading range was $118.30 to $384.56. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.