Snowflake edges up after increased $3.75 bln convertible bond sale

Snowflake

29/09/2026 14:28

** AI cloud firm Snowflake's SNOW.N shares up 0.4% at $329.69 before the bell after above-targeted haul
** Menlo Park, California-based SNOW early Tuesannounced pricing private offerings of $2 bln 0% convertible bonds (CBs) due Oct 15, 2029 and $1.75 bln 0% CBs due Oct 15, 2031
** Conversion price of $500.38 on 2029 CBs is 52.5% premium to stock's last close, while conversion price of $483.98 on 2031 CBs represents 47.5% premium
** SNOW shares finished down 2.3% at $328.12 on Mon after co launched offerings of $3.5 bln
** Co expects to use net proceeds to pay approx $383.5 mln cost of capped call transactions, and use approx $548.3 mln to repurchase a portion of its 0% CBs due 2027
** Remainder of proceeds earmarked for stock repurchases as well as acquisitions or investments, co said
** Through Mon, stock up ~50% YTD
** Avg rating of 50 analysts is "buy"; median PT of $448.50 up from $322.50 a month ago, per most recent LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))