OSI Systems, Inc. disclosed its intention to offer $400 million convertible senior notes due 2031 in a private offering to qualified institutional buyers.
The notes will be senior, unsecured obligations of OSI, accruing interest semi-annually and maturing on February 1, 2031.
Noteholders will have the option to convert their notes under certain conditions, with OSI settling conversions in cash and potentially shares of common stock.
Convertible Senior Notes Offering
OSI Systems plans a private offering of $400 million convertible senior notes due 2031 to qualified institutional buyers.
Conversion Rights
Noteholders will have the right to convert their notes under specific circumstances and periods, with conversions settled in cash and potentially company shares.
Repurchase Options
In case of certain corporate events, OSI may be obligated to repurchase the notes from noteholders for cash.
Use of Proceeds
OSI intends to use a portion of the net proceeds to repurchase common stock and the remainder for corporate purposes and debt repayment.
Regulatory Compliance
The notes and any shares upon conversion have not been registered under securities laws and can only be offered in compliance with exemptions.
- OSI Systems aims to raise significant funds through the proposed convertible senior notes offering.
- The utilization of the proceeds for common stock repurchases and corporate expenses signifies strategic financial planning by OSI.
The announcement of the convertible senior notes offering showcases OSI Systems' proactive approach to financing and strategic capital allocation, signaling confidence in its future growth prospects.