Oscar Health slides after launching $350 mln convertible debt deal

Shares of health insurer Oscar Health OSCR.N down 5.7% to $17.66 post-market as it looks to raise capital

New York City-based firm announces private offering of $350 mln convertible bonds due 2030

Co says plans to use net offering proceeds for general purposes, including to support future expansion fueled by strategic initiatives focused on AI, lowering the cost of care, among other uses

It also intends to use a portion of proceeds to pay cost of capped calls, derivative transactions employed to help offset dilution

Co has ~$4.8 bln market cap, based on ~258.6 mln shares outstanding

Stock on Mon closed down 3.1% at $18.73, trimming YTD gain to ~39%

Of 10 analysts covering OSCR, recommendation breakdown is 2 "strong buy" or "buy", 3 "hold" and 5 "sell" or "strong sell"; median PT is $11, per LSEG data