EMC Plans Note Offer

It wants to pay down a big credit line.
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Data storage company

EMC

(EMC)

said that it intends to offer convertible senior notes for $3 billion.

The Hopkinton, Mass.-based company added that $1.5 billion would be due 2011 and the remainder due 2013.

Proceeds of the issue would be used to repay a $2.2 billion credit facility and to purchase about $850 million of its common stock.

The offer will be through a private offering memorandum. The interest rate, conversion price and other terms are to be determined by negotiations between EMC and the initial purchasers of the notes, the company added. The purchasers would be given the option to buy an additional $450 million notes.

Shares of the company were trading down 8 cents, or 0.63%, at $12.62 Monday.

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