Snowflake Launches $3.5 Billion Convertible Senior Note Offering

Snowflake Inc. announced a $3.5 billion offering of convertible senior notes on September 28, 2026. The private placement for qualified institutional buyers is split into two series: $1.3 billion in notes due in 2029 and $2.2 billion due in 2031. Initial purchasers hold options to acquire an additional $200 million of the 2029 notes and $300 million of the 2031 notes.

Both series of notes carry no regular interest and will not accrete. The company intends to use the proceeds for general corporate purposes and the repurchase of a portion of its 0% convertible senior notes due in 2027. Snowflake also plans to use the funds for capped-call transactions to mitigate potential dilution that may result from the conversion of the new notes.

Following the announcement, Snowflake shares declined approximately 2.8% during Monday morning trading in New York.