Snowflake edges up after increasing convertible bond sale to $3.75 billion
SNOW•Snowflake priced $3.75 billion in zero-coupon convertible bonds, up from the $3.5 billion offering launched Monday. The company said proceeds would fund capped-call transactions, repurchase some 2027 notes, and support stock repurchases, acquisitions or investments.
1. Bond sale expanded
Snowflake priced private offerings of $2 billion in zero-coupon convertible bonds due in 2029 and $1.75 billion due in 2031. The conversion prices are $500.38 for the 2029 notes, a 52.5% premium to the stock’s last close, and $483.98 for the 2031 notes, a 47.5% premium.
2. Planned use of proceeds
Snowflake expects to use about $383.5 million of net proceeds to pay for capped-call transactions and about $548.3 million to repurchase part of its zero-coupon convertible notes due in 2027. The remaining proceeds are earmarked for stock repurchases, acquisitions or investments. Shares were up 0.4% at $329.69 before the bell after closing Monday down 2.3% at $328.12.
