BUZZ-Snowflake shares fall due to $3.5 billion zero-coupon convertible bond issuance plan

September 28 - ** Artificial intelligence cloud computing company Snowflake (SNOW.N) saw its stock price fall by 5% to $319.21 during pre-market trading on Monday, as the company seeks to raise funds to repay part of its debt

** Headquartered in Menlo Park, California, SNOW (link) is issuing $1.3 billion in zero-coupon convertible bonds (convertible notes) via private placement, maturing on October 15, 2029; and $2.2 billion in zero-coupon convertible bonds maturing on October 15, 2031

** The company plans to use the net proceeds from this issuance to repurchase part of its 0% convertible bonds due in 2027

** It also plans to use some of the proceeds for stock buybacks, acquisitions or investments, and to fund capped call transactions to offset potential equity dilution

** The company's market capitalization is approximately $118.5 billion

** As of Friday's close, SNOW's share price has risen by 53% so far this year, including a 10% increase since the company raised its annual revenue outlook on September 2 (link), driven by growing demand for its cloud data platform and artificial intelligence products

** According to LSEG data, the average rating from 51 analysts covering the stock is “Buy”; the median target price has increased from $322.50 a month ago to $448.50

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