$OSCR (-1,52%) just raised $355M through convertible notes at only 2.25% interest. Many investors are worried about dilution, but the reality is much lighter than it seems.
The notes convert at $24.82 per share. If the stock stays below that level, there is zero dilution. Even if it goes higher, Oscar has capped calls that protect shareholders all the way up to $37.46. Only if the stock rises above that cap does dilution actually happen, and even then it’s small – about 5–6%.
In other words, dilution isn’t something to fear right now. The company secured cheap capital to fuel growth in AI, member experience, and expansion, while keeping investors protected. If Oscar grows, shareholders still stand to benefit massively.