May 27, 2009 (FinancialWire) — Alliance Data Systems Corp. (NYSE: ADS) plans to offer $300 million of convertible senior notes due 2014. The company also plans to grant the initial purchasers an option to purchase up to an additional $45 million of the notes solely to cover over-allotments.

The company plans to use the net proceeds of the offering and related warrant transactions to repurchase an estimated amount of $75.0 million worth of shares of Alliance Data common stock.

Alliance also plans to pay an estimated amount of $39.3 million for the cost of convertible note hedge transactions entered into in connection with the offering, taking into account the anticipated proceeds to Alliance Data from related warrant transactions, each described below.

The company will also use the funds for general corporate purposes, which may include repayment of outstanding indebtedness under its revolving credit facility.

Dallas-base Alliance Data offers credit services including branded credit programs, co-brand, and commercial card services. It also offers loyalty programs and consulting as well as database, analytics and targeted marketing communications services.

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