OSI offers $175M in senior notes

The USA's OSI Pharmaceuticals has priced a private placement of $175.0 million in unsecured senior notes to buy back common stock and a separate class of senior notes. The notes in the offering are due 2038 and the firm has granted initial purchasers a 13-day option to buy up to $25.0 million principal amount of the notes. The sale is expected to close on January 9, subject to customary closing conditions.

The company intends to use the net proceeds from the offering to fund repurchases of approximately 1.5 million shares of its common stock concurrently with the offering for an aggregate price of $65.0 million, as well as to buy back or otherwise retire its 3.25% convertible senior subordinated notes due 2023, if not converted, as well as for general corporate purposes. The convertible notes will pay interest semi-annually in arrears through maturity at an annual rate of 3% and will mature on January 15, 2038.