08:21 AM EDT, 07/16/2024 (MT Newswires) -- OSI Systems ( OSIS ) said Tuesday it plans to sell $275 million worth of convertible senior notes due 2029 through a private offering.

Initial buyers will have an option to buy up to an additional $41.25 million principal amount of notes, the company said.

The notes, redeemable on or after Aug. 6, 2027, would accrue interest payable semi-annually in arrears and mature on Aug. 1, 2029, OSI said.

Up to $100 million of the net proceeds will likely be used to buy back common shares in privately negotiated deals with or through one of the initial buyers, the company said, adding that the remainder is expected to be used to pay off a part of the revolving credit facility outstanding and for general corporate purposes.