Charles River to offer $300N notes

US firm Charles River Laboratories International has announced its intention to offer, subject to market and other conditions, $300.0 million principal amount of convertible senior notes due 2013, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. In certain circumstances, the notes may be convertible into cash up to the principal amount and any conversion value above the principal amount may be convertible into cash, shares of Charles River common stock or a combination of cash and company common stock, at the firm's option. The interest rate, conversion price and other terms of the notes will be determined by negotiations between Charles River and the initial purchasers of the notes. The group expects to grant the initial purchasers a 13-day option to buy up to $50.0 million principal amount of additional notes to cover over-allotments.

Charles River intends to use a portion of the net proceeds to repurchase around $125.0 million of its common stock in negotiated transactions from purchasers of the notes concurrently with the offering. If the initial buyers exercise their option the firm may use a portion of the net proceeds to repurchase additional shares.