03:22 AM EDT, 09/25/2024 (MT Newswires) -- Snowflake (SNOW) said Wednesday it has priced a private placement of $1 billion of zero percent convertible senior notes due 2027 and $1 billion of zero percent convertible senior notes due 2029.

The initial purchasers have been granted a 13-day option to purchase up to $150 million additional amount of each series of notes, which will be convertible at an initial rate of $157.50 per share.

Net proceeds, estimated to be about $1.97 billion to $2.27 billion, will be used to fund certain capped call transactions, the repurchase of $400 million of class A common shares, and for general corporate purposes, the company said.

Closing of the offering is expected to occur on Friday, subject to customary conditions.

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