June 3, 2009 (FinancialWire) — Alliance Data Systems Corp. (NYSE: ADS) said it has closed its offering of $300 million of convertible senior notes.

The five-year convertible senior notes will carry a 4.75 percent coupon and effective conversion price of $70.54, representing a premium of 75 percent above the stock closing price on May 27, 2009.

Alliance Data said it will use the net proceeds of this transaction, free cash flow and existing credit facilities, including a new bank term facility, to pay for transaction-related expenses, to continue executing on a $1.8 billion stock repurchase program, to repay senior notes that matured on May 15 and to support on-going operations.

Dallas-based Alliance Data is a provider of loyalty and marketing services derived from transaction data. The company employs around 7,000 associates at 50 locations worldwide.

Alliance Data is the parent company of Epsilon, a provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne, which owns and operates the Air Miles reward program, a Canadian coalition loyalty program.

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