Biotech drug developer Human Genome Sciences Inc. said Wednesday that it plans to offer $400 million in convertible senior notes due in 2018.
The Rockville, Md., company said the notes will be convertible, under certain circumstances, into cash, shares of company stock or a combination. The company will grant underwriter Citigroup the option to buy up to an additional $60 million in notes.
Human Genome Sciences said it may use proceeds from the offering to repurchase some outstanding convertible debt due next year.
Shares of Human Genome Sciences fell 4.8 percent, or 49 cents, to $9.76 in morning trading, while broader indexes rose more than 1 percent.