12:17 PM EDT, 08/07/2024 (MT Newswires) -- ANI Pharmaceuticals ( ANIP ) said Wednesday it plans a private offering of $250 million of convertible senior notes due 2029.

The company said it also intends to grant the initial buyers of the notes a 13-day option to buy up to an additional $37.5 million of notes.

The terms of the notes, such as the interest rate and initial conversion rate, will be determined at the pricing of the offering, the company said.

ANI Pharmaceuticals ( ANIP ) said that in connection with the pricing, it expects to enter into privately negotiated capped call transactions that are generally anticipated to lower the potential dilution to its common stock upon any conversion of the notes.

The company said it plans to use part of the net proceeds from the offering to fund the cost of entering into the capped call transactions, with the remaining proceeds to be used to help fully repay its existing senior secured term loan facility.

The company added that if the initial purchasers exercise their option to buy additional notes, then it plans to use part of the additional net proceeds to fund the cost of entering into additional capped call transactions. Any remaining proceeds will be used for general corporate purposes.

Shares of ANI Pharmaceuticals ( ANIP ) were down 9% in recent Wednesday trading.

Price: 57.58, Change: -5.72, Percent Change: -9.03