Snowflake prices enlarged $3.75 billion zero-coupon convertible financing

Snowflake ($SNOW) priced $3.75 billion of zero-coupon convertible senior notes, increasing the base financing from $3.5 billion. The placement comprises $2.0 billion maturing in 2029 and $1.75 billion in 2031. Initial purchasers can buy another $550 million across the two series. The company expects approximately $3.70 billion of net proceeds before the cost of associated hedges and planned debt repurchases.

About $383.5 million is allocated to capped-call transactions intended to limit dilution, and approximately $548.3 million would repurchase a portion of the existing 2027 notes. Remaining proceeds are available for general corporate purposes, potentially including acquisitions, investments or share repurchases. Initial conversion prices are approximately $500.38 and $483.98 per share. Settlement is expected in early October, subject to conditions; the financing is priced, not yet closed.

Sources:

• Snowflake release via Business Wire
• Timestamped issuer-release reproduction