Charles River Laboratories International
, a provider of animals used in medical testing, said it priced a $300 million offering of convertible senior notes that will mature in 2013.
The company expects to grant the initial purchasers a 13-day option to purchase up to $50 million of additional notes to cover over-allotments.
The notes maturing in 2013 will yield 2.25%, payable semi-annually.
The company expects the net proceeds from the offering to be about $293 million, after deducting estimated discounts, commissions and expenses.
In certain circumstances, the notes may be convertible into cash up to the principal amount and any conversion value above the principal amount may be convertible into cash, shares of Charles River common stock or a combination of both, at Charles River's option, the company said.
The Wilmington, Mass.-based company plans to use a portion of the net proceess to repurchase about $150 million of its common stock.
In addition, if the initial purchasers exercise their option to purchase additional notes, the company expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional convertible note hedge transactions.
The company also plans to use the remainder of the net proceeds from this offering for general corporate purposes, including repurchasing shares of Charles River common stock in the open market from time to time.
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