Jakks Pacific Inc. said Wednesday that it plans to raise $85 million through a private placement of convertible senior notes, proceeds of which will be used to buy back earlier issued debt.

The Malibu toy maker company said net proceeds, along with cash on hand, would be used to buy back all or part of notes due in 2023. The interest rate, conversion price and other terms will be determined by negotiations between Jakks and the initial purchaser of the notes.

The new notes, due 2014, will be offered to qualified institutional buyers and the buyer will get a 30-day over-allotment option of up to $15 million notes, the company said.

Shares were down $1.24, or 9 percent, to $12.83 in midday trading on the Nasdaq.