Snowflake shares traded lower after the cloud data platform provider announced plans for a private offering of $3.5 billion in zero-coupon convertible senior notes. The package includes $1.3 billion of notes due in 2029 and $2.2 billion due in 2031, with initial purchasers receiving 13-day options for an additional $200 million and $300 million, respectively. The unsecured securities will pay no regular interest or principal accretion. Snowflake plans to use the proceeds for capped call transactions, repurchases of its 2027 convertible notes and general corporate purposes, including potential stock or note repurchases, acquisitions and strategic investments. The company recently reported second-quarter revenue of $1.55 billion and adjusted earnings of 62 cents per share, beating estimates of $1.48 billion and 45 cents, respectively. Snowflake forecast third-quarter product revenue of $1.588 billion to $1.593 billion, representing approximately 37.5% year-over-year growth. Shares were down 1.17% at $331.94, while S&P 500 futures fell 0.3%. Analyst coverage showed a Buy rating and an average price target of $427.91 across 50 analysts, while Snowflake’s momentum score was 96.66 and classified as bullish.