BUZZ-Snowflake shares rise slightly after the company issued $3.75 billion in convertible bonds

September 29 - ** Artificial intelligence cloud computing company Snowflake (SNOW.N) rose 0.4% in pre-market trading to $329.69 after its fundraising exceeded the target

** California-based SNOW announced earlier Tuesday (link) that it had priced a private placement of $2 billion of 0% convertible bonds due October 15, 2029, and $1.75 billion of 0% convertible bonds due October 15, 2031

** The conversion price of the convertible bonds maturing in 2029 is $500.38, which is a 52.5% premium over the latest closing price; while the conversion price of the convertible bonds maturing in 2031 is $483.98, a 47.5% premium

** On Monday, after SNOW announced a $3.5 billion issuance plan (link), its stock closed down 2.3% at $328.12

** The company expects to use the net proceeds to pay approximately $383.5 million in capped call transaction costs, and to use about $548.3 million to repurchase part of the 0% convertible bonds maturing in 2027

** The company stated that the remaining funds raised will be used for stock buybacks and for mergers, acquisitions, or investments

** As of Monday, the stock had risen about 50% this year

** According to the latest data from the London Stock Exchange Group (LSEG), the average rating of 50 analysts is "Buy"; the median target price has increased to $448.50 from $322.50 a month ago

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