SANTA ANA, Calif.--Advanced Medical Optics (NYSE: EYE) is offering qualified institutional buyers $150 million in convertible notes in a move to reduce its debt.

The senior subordinated notes due 2025 will be convertible into cash before June 1, 2011, under certain circumstances. After that date, the notes will be convertible into cash at any time before maturity.

Advanced Medical said it intends to use the proceeds to pay off an outstanding term loan under its senior credit facility. In May, the company acquired VISX in a $1.25 billion transaction.