Charles River Laboratories International
, a provider of animals used in medical testing, said it intends to offer $300 million of convertible senior notes due 2013 in a private offering.
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.
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 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 Wilmington, Mass.-based company plans to use a portion of the net proceeds to repurchase about $125 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.
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