A larger insurer will be selling debt to institutional investors.

Prudential Financial Inc., Newark, N.J., has announced plans to raise $3 billion by offering convertible senior notes due in 2037 through a private placement.

The initial purchaser of the notes will have an option to buy an additional $450 million in convertible notes, Prudential says.

Prudential will use the proceeds to fund subsidiary operating needs, to buy short-term fixed-income investments, and to pay expenses related to general corporate purposes, the company says.

Prudential says it also expects to buy back about $239 million in company stock.

Much of the stock repurchased may come from the holders of the convertible notes, Prudential says.