Snowflake Inc. has completed a private offering of $3.75 billion in aggregate principal amount of 0.00% Convertible Senior Notes. The offering consists of two separate series of notes due in 2029 and 2031, respectively. The company received net proceeds of approximately $3.70 billion, which were partially used to fund capped call transactions and repurchase a portion of its existing 2027 convertible notes.
Key Details
- Offering Structure: The offering includes $2.0 billion of 0.00% Convertible Senior Notes due 2029 and $1.75 billion of 0.00% Convertible Senior Notes due 2031.
- Net Proceeds & Use: Net proceeds were approximately $3.70 billion. The company used $383.5 million to pay for capped call transactions and $548.3 million to repurchase a portion of its existing convertible notes due in 2027. The remainder is for general corporate purposes.
- Conversion Terms: The 2029 Notes have an initial conversion price of approximately $500.38 per share. The 2031 Notes have an initial conversion price of approximately $483.98 per share.
- Capped Call Transactions: In connection with the offering, Snowflake entered into capped call transactions expected to reduce potential stock dilution upon conversion of the notes. The cap price for these transactions is initially $820.30 per share.