Oscar Health Shares Drop After Pricing of $355 Million Notes Offering
By Chris Wack
Oscar Health shares were 6% lower, at $17.60, after the company disclosed the pricing of its offering for $355 million in 2.25% convertible senior subordinated notes due 2030.
The company said the offering size was increased from $350 million in notes previously.
The issuance and sale of the notes are scheduled to settle Thursday. Oscar also granted the initial purchasers of the notes an option to purchase up to an additional $55 million of notes.
Oscar estimates proceeds from the offering will be $342.5 million, or $395.8 million if the initial purchasers fully exercise their option to purchase additional notes.
The company said it intends to use proceeds for general corporate purposes, including to support future expansion fueled by strategic initiatives focused on AI, lowering the cost of care, and enhancing consumer healthcare experiences. The funds will also support additional growth opportunities, including the potential extension of enhanced premium tax credits.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
September 16, 2025 10:44 ET (14:44 GMT)
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