Advanced Medical Optics

(EYE) - Get Report

said it would raise $500 million by selling debt to finance a big stock buyback.

The maker of ophthalmic surgical devices and eye care products intends to offer about $450 million of convertible senior subordinated notes due 2026, subject to market conditions and other factors, and an additional $50 million of notes, subject to the initial purchasers' option.

The offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933.

The interest rate, conversion price and other terms of the notes will be determined by negotiations between the company and the initial purchasers of the notes.

The Santa Ana, Calif.-based company expects to use the proceeds to purchase $500 million worth of shares of its common stock, as well as up to $100 million of its outstanding convertible notes through privately negotiated repurchases.

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