BUZZ-IGI Laboratories: Drops 10% on convertible note offer

** Topical skin product maker's shares down 10.4 pct on launch of private convertible notes offering set to price after market close

** Shares (Frankfurt: DI6.F - news) skid as much 11.3 pct to $9.36 low on about 3x ADTV, had more than tripled YTD before today

** Offering $125 mln convertible notes due 2019

** Bookrunners JPM and DB marketing notes, price talk 3.25-3.75 pct coupon, 25-30 pct convert premium

** Notes settle solely in cash, pending shareholder approval to increase number of authorized common shares, company says

** IG (LSE: IGG.L - news) has $557 mln market cap, 52.8 mln shares outstanding, based on Tuesday's $10.55 last sale price

** To use net proceeds from offering for general corporate purposes, including cap ex, potential acquisitions and strategic transactions. IG recently bought rights to 20 combined products from AstraZeneca (NYSE: AZN - news) and Valeant

** Three brokerages initiated coverage within last 12 months and split their ratings among "neutral", "buy" and "strong buy" with $11 mean PT. JPM and DB do not currently cover company

(Messaging: lance.tupper.thomsonreuters.com@reuters.net)