Snowflake completes $3.75 billion convertible notes offering
Net proceeds of roughly $3.70 billion fund capped call deals and a buyback of existing 2027 notes, with the rest left for general corporate use.
Published
Snowflake has closed a private offering of convertible senior notes totaling $3.75 billion, split between $2.0 billion due 2029 and $1.75 billion due 2031. Both tranches carry no regular interest. The deal was upsized from an originally announced $3.5 billion and closed on October 1, 2026.
Net proceeds came to approximately $3.70 billion. Snowflake spent about $383.5 million on capped call transactions, a standard step that limits share dilution from the new notes, and used roughly $548.3 million to repurchase part of its existing 0.00% convertible notes due 2027. The remainder is available for general corporate purposes, including stock repurchases or acquisitions.
The refinancing pushes Snowflake's debt maturities well past 2027, replacing a chunk of that debt with capital due in 2029 and 2031, all at zero coupon. That keeps cash interest costs negligible even though the company now carries more total convertible debt outstanding.
The offering comes after Snowflake raised its product guidance in September and after its stock was cited as a standout performer in a broader software rally that also lifted Palantir, ServiceNow and Oracle. Taken together, the timing points to a company raising capital from a position of strength rather than under any funding pressure, with the leftover cash giving it room to pursue buybacks or acquisitions.