OSI Systems Locks In $500M Low-Cost Convertible Deal

OSI Systems just priced an upsized 500 million dollar offering of 0.50 percent convertible senior notes due 2031, raising more cash than originally planned. The company will use the money to buy back some of its own shares, pay down its credit facility, and keep extra flexibility for future growth. In this episode, we break down what this kind of cheap, long dated funding means for OSI Systems and for other names that rely on convertible debt, plus where traders might find long and short ideas around the deal.

WINNERS

Category: Security and electronic systems

Companies: $OSIS, $TDY

Reason: OSI Systems $OSIS gets very low cost funding and uses part of it to repurchase stock and tidy up its balance sheet, which can support the share price and giv ...