OSI Systems, Inc. announced the pricing of its offering of $500 million aggregate principal amount of 0.50% convertible senior notes due 2031 in a private offering.
The offering size was increased from the previously announced $400 million aggregate principal amount of notes.
The notes will be senior, unsecured obligations of OSI and will accrue interest at a rate of 0.50% per annum.
Offering Details
$500 million convertible senior notes due 2031 were priced in a private offering, with an increase from the initial offering size.
Interest and Maturity
Notes will accrue interest at a rate of 0.50% per annum and mature on February 1, 2031, with possible conversion rights for noteholders.
Conversion Terms
Initial conversion rate is 2.8263 shares of common stock per $1,000 principal amount of notes, at an initial conversion price of approximately $353.82 per share.
- OSI estimates net proceeds from the offering to be approximately $489.4 million, with potential increase to $562.9 million if initial purchasers exercise their option fully.
- Intended uses of the proceeds include repurchasing shares of common stock, repaying credit facilities, and general corporate purposes.
- Concurrent repurchases of shares may influence stock prices and terms of the notes.
The convertible notes offering by OSI Systems, Inc. signifies a strategic financial move to raise substantial capital for various corporate purposes, leveraging the convertible features for investor flexibility and potential stock price impacts.