Varex Imaging (NSDQ:VREX) announced today that it plans to offer $150 million in a private offering of convertible senior notes due in 2025.

Salt Lake City-based Varex expects to grant initial purchasers a 13-day option to purchase up to an additional $22.5 in notes as well, according to a news release.

Notes in the offering are convertible at the option of the holders into cash, shares of Varex common stock at a par value of 1¢ per share, or a combination of the two at Varex’s election. Interest rate, initial conversion rate, offering price and other terms are set to be determined when the offering is priced.

Varex plans to use the proceeds to partially repay existing indebtedness under its credit agreement and to fund the net cost of entering into convertible note hedge and warrant transactions, as well as for other general corporate purposes.

The company develops X-ray imaging components, including X-ray tubes, digital detectors and other image processing solutions that comprise X-ray imaging systems.