Osisko Development Raises US$275M via 4.125% Convertible Notes with 25% Premium
ODV•Osisko Development priced a US$275 million 4.125% convertible senior notes due 2031 at a 25% premium to its US$2.94 closing price, yielding a US$3.68 conversion price. Proceeds of about US$216 million (up to US$240 million) will fund the Cariboo Gold Project, corporate needs and US$37 million in capped calls at a US$5.88 cap.
1. Offering Details
Osisko Development has priced a US$275.0 million private placement of 4.125% convertible senior notes due June 15, 2031, with US$225.0 million sold to qualified institutional buyers and US$50.0 million purchased by an affiliate. Initial purchasers have a 13-day option to acquire an additional US$25.0 million of notes.
2. Use of Proceeds
Net proceeds are expected to total approximately US$215.9 million (or US$240.0 million if the full US$25.0 million option is exercised) and will be used to develop the Cariboo Gold Project, support general corporate purposes and cover the US$36.9 million cost of cash-settled capped calls.
3. Conversion Features and Capped Calls
The notes carry a 25.0% conversion premium over a US$2.94 share price, setting an initial conversion rate of 272.1088 shares per US$1,000 note (US$3.68 per share). Capped call transactions with a US$5.88 cap are being purchased to offset potential share dilution on conversion.
4. Redemption Terms
The notes accrue interest at 4.125% per annum, payable semi-annually, and are not redeemable before June 20, 2029 except for certain tax law changes. After that date, optional redemption for cash is allowed if the share price exceeds 130% of the conversion price over a specified trading period and liquidity conditions are met.
