Charles River Laboratories
, a provider of animals used in medical testing, announced Monday that it closed the sale of $300 million principal amount of convertible senior notes due 2013 in an offering to qualified institutional buyers. The net proceeds from this offering were about $293 million.
The company repurchased about $150 million or 3.7 million shares of its common stock in negotiated transactions from purchasers of the notes concurrently with the offering. It used $28 million from the proceeds to fund convertible note hedge and warrant transactions. The company intends to use the remaining proceeds for general corporate purposes, including repurchase of shares of the company in the open market from time to time.
The company reaffirmed its 2006 guidance saying that it expects to report a loss of 9 cents a share to 15 cents a share. Adjusted for items, the company expects to earn $2.12 a share to $2.18 a share on sales growth of between 6% and 8%. Analysts polled by Thomson First Call are expecting earnings of $2.14 a share.
Shares fell 32 cents Tuesday to $37.61.
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