Priceline.com plans to issue $500 million in convertible senior notes due 2015 in a private offering.
The online travel retailer intends to use the net proceeds to repurchase up to $100 million of its outstanding common stock in privately negotiated, off-market transactions.
Priceline said it also would use proceeds for general corporate purposes, such as repurchasing shares of common stock on the open market, repaying outstanding debt and corporate acquisitions.
In connection with the proposed note offering, Priceline's board authorized the repurchase of up to $500 million in shares of common stock, including up to $100 million in shares to be repurchased concurrently with the offering.