The notes will pay interest semiannually at 3.875 percent per year. Noteholders can convert their debt under certain circumstances to either common stock, cash, or a combination of the two.

The company said late Tuesday that it plans to use the offering's proceeds for general corporate purposes.

The underwriters will have the option to buy up to $45 million additional notes to cover any overallotments.

Jefferies also reported a third-quarter profit on Tuesday, helped by improved fixed income and commodities revenue.

Shares of Jefferies Group fell $1.60, or 5.5 percent, to $27.44 in midday trading. The stock has traded in a range of $7.97 to $30.99 over the last year.

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