04:50 PM EDT, 09/23/2024 (MT Newswires) -- Snowflake (SNOW) plans to offer $2 billion in convertible senior notes in a private placement.

The placement includes two offerings of $1 billion due in 2027 and 2029, the company said Monday in a statement.

Snowflake plans to grant initial buyers of the notes a 13-day option to purchase up to an additional $150 million of the 2027 notes and $150 million of the 2029 notes.

Net proceeds will be used to pay the costs of privately negotiated capped call transactions related to the notes, to repurchase up to $575 million of common shares from buyers of the notes and for general corporate purposes, the company said.

Shares of Snowflake fell 2.7% in recent after-hours activity.

Price: 110.19, Change: -3.07, Percent Change: -2.71