Overstock.com plans $20 million buyback of stock or notes

Overstock.com Inc., a Salt Lake City-based online seller of excess retail inventory, plans to buy back $20 million of stock or notes to boost shareholder value and cut debt.

The board authorized the two-year repurchase program Monday, Overstock.com said in a statement.

Overstock.com had approximately 1.2 million stock options outstanding as of the third quarter ended Sept. 30, said Kevin Moon, director of investor relations. The company has $75 million in convertible senior notes that have a coupon of 3.75 percent and mature in 2011.

The Web retailer, following its narrower $4.7 million third-quarter loss, said it expected to be profitable in the fourth quarter and 2008.