Oscar Health, Inc. announces a proposed offering of $350,000,000 aggregate principal amount of convertible senior subordinated notes due 2030.
The net proceeds will be utilized for general corporate purposes, including future expansion opportunities fueled by strategic AI and member experience initiatives.
Part of the proceeds will be used to purchase a call option on Oscar stock to offset any share dilution, capped at 100% premium to the stock price at pricing.
Offer Details
$350,000,000 aggregate principal amount of convertible senior subordinated notes due 2030 announced.
Utilization of Proceeds
Proceeds to support general corporate purposes, future expansion opportunities, strategic AI initiatives, and enhanced premium tax credits.
Convertible Notes Information
Unsecured indebtedness subordinated to senior indebtedness, accrues interest, and matures on September 1, 2030. Redeemable by Oscar under certain conditions.
- The offering aims to enhance long-term growth and increase consumer and employer adoption of the individual market.
- Strategic initiatives such as AI investments, cost of care reduction, and consumer healthcare experiences are expected to be advanced with the funds raised.
The convertible notes offering by Oscar Health will provide the company with access to capital for strategic initiatives and expansion, ensuring future growth and innovation in the healthcare sector.