China’s Home Inns & Hotels Management is planning to offer $160m in convertible senior notes due in 2015, in a private offering to buyers.

The company intends to grant to the initial buyer a 30-day option to purchase up to an additional $24m of the convertible senior notes to cover over-allotments.

Home Inns & Hotels Management intends to use the net proceeds from this offering for new business development, investments in complementary businesses and assets, strategic acquisitions and general corporate purposes.

The company said that the interest rate, conversion price and other terms would be decided while pricing the offering.

The Shanghai-based hotel group deals in development, lease, operation, franchise and management of a chain of economy hotels in China.