Ctrip.com International (NASDAQ: CTRP ) is taking a potentially lucrative trip to the debt markets. The company has announced that it intends to float a $500 million aggregate principal amount offering of convertible senior notes maturing in 2018. The conversion rate into Ctrip.com's American depositary shares, as well as other terms, will be determined when the issue is priced. Additionally, Ctrip.com said it expects to grant the offering's initial purchaser a 30-day option to buy up to an additional $75 million in principal amount of the notes solely to cover overallotments, if any.
The company will use its share of the proceeds to pay financing costs and for "other general corporate purposes." These include working capital requirements, potential acquisitions, and possible ADS repurchases and note retirements.
Currently, Ctrip.com has more than 130.7 million ADSes outstanding, and its stock trades at $55.11 per ADS.