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The shares would be bought in an accelerated repurchase program entered into with an affiliate of the initial purchaser of its notes. That agreement will be part of a broader share buyback deal valued at $300 million that was authorized earlier by the company’s board.
The Silver Spring, Md.-based maker of therapeutics for patients with chronic and life-threatening diseases also expects to grant to the initial purchasers an option to buy up to an additional $40 million in notes to cover any over-allotments.
United Therapeutics said the interest rate, conversion price and other terms of the notes will be determined at the time of pricing.
The company said it has entered into a convertible note hedge transaction to insure against the potential dilution of its common stock upon future conversion of the debt.