Mateo, CA – Sept 25, 2024 Snowflake Inc. (NYSE: SNOW), a leading AI Data Cloud company, has priced $1 billion of 0% Convertible Senior Notes due 2027 and $1 billion of notes due 2029 in a private placement to institutional buyers. The offering, expected to close on September 27, 2024, includes an option for purchasers to acquire an additional $150 million in each series.

The notes will not bear interest, and Snowflake expects to raise approximately $1.97 billion, or $2.27 billion if additional options are exercised. The funds will be used for stock repurchases, including a $400 million buyback of Class A shares, as well as general corporate purposes. The notes are convertible into cash or shares at a price of $157.50 per share, a 40% premium to the stock’s September 24 closing price.

Snowflake also entered into capped call transactions to minimize stock dilution upon conversion, with a cap price set at $225 per share.

In a year marked by significant fluctuations, Snowflake Inc. (SNOW) has experienced a notable decline in its stock performance. As of September 25, 2024, the company’s stock price stands at $113.49, down from an opening price of $148.82 just a year ago. This represents a substantial decrease of $35.33, or approximately 23.73%.

The past year has seen Snowflake’s stock reach a peak of $235.00 on February 28, 2024, only to face a downward trajectory in subsequent months. The stock’s 52-week low was recorded at $107.93 on August 5, 2024, highlighting the volatility that has characterized its performance.

Recent trading activity indicates a mixed sentiment among investors. On September 24, 2024, SNOW closed at $112.50, reflecting a slight increase of $0.35 (+0.31%). However, the stock had previously closed at $113.26 on September 23, 2024, after a gain of $1.85 (+1.66%). The fluctuations in stock price have left investors cautious as they navigate the uncertain market landscape.