GAITHERSBURG, Md. (AFX) - Biotech company MedImmune Inc. said Wednesday it plans to offer $1 billion in senior notes to qualified institutional buyers.
The planned offerings are comprised of $500 million in convertible senior notes due 2011, and $500 million in convertible senior notes due 2013.
The notes will be convertible, in certain circumstances, into a combination of cash and stock, the company said.
MedImmune said expects to grant the initial buyers an overallotment option to buy up to another $75 million of both the 2011 and the 2013 notes.
The company said it plans to use about $500 million of the proceeds for repurchase of its 1 percent convertible senior notes on July 15, and about $150 million to buy back its common shares in private transactions.
Shares fell $1.03, or 3.5 percent, to $28.20 in after-hours trading, having earlier closed up 38 cents at $29.23 on the Nasdaq. The stock has ranged between $26.48 and $37.58 over the past year.
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