Oscar(US:OSCR) Benzingaยท2025-09-16 04:28Core Insights - Oscar Health Inc. shares are experiencing a downward trend, dropping 3.63% in after-hours trading to $18.05 from $18.73 [2] - The company plans to offer $350 million in convertible senior subordinated notes to eligible investors [2][3] Convertible Notes Details - The notes will mature in 2030 and are part of a private placement, with an option for initial buyers to purchase an additional $52.5 million within 13 days [3] - These unsecured notes will be junior to Oscar's senior debt and will accrue interest paid semi-annually [3] Use of Proceeds - Funds from the offering will be allocated for general corporate needs, including strategic AI initiatives, cost-cutting measures, and enhancing consumer healthcare services [4] - Proceeds will also support potential premium tax credit extensions and fund capped call transactions [4][5] Market Impact and Hedging Activities - The offering includes capped call transactions to mitigate potential dilution upon note conversion [6] - Hedging activities may influence Oscar's stock price and affect noteholders' conversion abilities [6] Stock Performance - Over the past year, Oscar's stock has decreased by 14.55%, but has gained 39.36% this year [7] - The stock peaked at $21.44 on June 30, 2025, and has fluctuated between $11.20 and $23.79 over the past year [7][8] - The current market capitalization stands at $4.84 billion, with an average trading volume of 18.01 million shares [8]