Biotech company United Therapeutics (NASDAQ:UTHR) intends to offer $210 million in debt to institutional investors and use proceeds to buy up to $212 million of its shares.
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.
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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.