Envestnet Inc. proposes to offer $300 million of convertible notes due 2023 in a private offering to qualified institutional buyers.

The company also expects to grant the underwriters an option to purchase within a 30-day period up to an additional $45 million of notes.

The notes will be general unsecured obligations, subordinated in right of payment to Envestnet's obligations under its revolving credit facility. Interest will be payable semiannually and upon conversion; the notes may be settled in cash, common stock, or a combination of cash and common stock.

Envestnet expects to use a portion of the net proceeds of the offering to repay the outstanding principal balance of its revolving credit facility. The company plans to use the remaining net proceeds from the offering, as well as the increased amounts available under its revolving credit facility, for general corporate purposes, which may include selective strategic investments through acquisitions, alliances or other transactions and to repurchase or retire its outstanding 1.75% convertible notes due 2019.