Omnicell (OMCL) said late Monday it plans to offer $150 million of convertible senior notes due 2029 in a private placement.

Initial buyers of the notes will be given an option to buy up to an additional $22.5 million of notes, the company said.

Omnicell said it will use part of the net proceeds from the offering to pay the cost of the convertible note hedge deals and will use the rest of the net proceeds from the offering, plus cash on hand, to repurchase for cash up to $400 million its 0.25% convertible senior notes due 2025.