OSI Systems Announces $400M Convertible Senior Notes Offering

By Hao Liu • Monday, November 17 10:15 • Permanent Link

OSI Systems, Inc. has announced its proposed offering of $400 million aggregate principal amount of convertible senior notes due 2031. The company also expects to grant the initial purchasers of the notes an option to purchase up to an additional $60.0 million principal amount of notes.

The notes will be senior, unsecured obligations of OSI, will accrue interest payable semi-annually in arrears, and will mature on February 1, 2031. Notably, noteholders will have the right to convert their notes in certain circumstances and during specified periods, with OSI settling conversions in cash and, if applicable, shares of its common stock.

The interest rate, initial conversion rate, and other terms of the notes will be determined at the pricing of the offering, which reflects the company's commitment to offering attractive terms to investors.

Concurrently with the pricing of the offering, OSI expects to use up to approximately $175 million of the net proceeds from the offering to repurchase shares of its common stock in privately negotiated transactions. This strategic move is expected to impact the market price of the company's common stock, potentially influencing the initial conversion price for the notes being offered.

The company intends to use the remainder of the net proceeds from the offering to repay a portion of the revolving credit facility outstanding, pay related fees and expenses, and for other general corporate purposes. This allocation of funds demonstrates OSI's focus on managing its financial obligations and enhancing its overall financial position.

Notably, the offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been registered under the securities act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the securities act and any other applicable securities laws.

Today the company's shares have moved 0.25% to a price of $273.55. For the full picture, make sure to review OSI SYSTEMS INC's 8-K report.

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