Loan & DebtJun 1, 2026, 08:17 AM
Osisko Development Closes US$300M Convertible Notes Offering
AI Summary
Osisko Development Corp. announced the closing of an additional US$75.0 million in 4.125% convertible senior notes due 2031, bringing total gross proceeds from its offerings to US$300.0 million. This includes the full exercise of the initial purchasers' option and a private placement with Double Zero Capital. The estimated net proceeds of approximately US$250.0 million (after capped call costs) will be used for the development of the Cariboo Gold Project and general corporate purposes. The company also entered into capped call transactions to effectively increase the conversion premium from 25% to 100%, mitigating potential dilution.
Key Highlights
- Osisko Development closed US$300.0 million in total gross proceeds from convertible senior notes offerings.
- Additional US$75.0 million notes include US$25.0 million from initial purchasers' option and US$50.0 million from Double Zero Capital.
- Net proceeds are estimated at US$290.0 million, or ~US$250.0 million after US$40.2 million for capped call transactions.
- Proceeds will fund the Cariboo Gold Project development and general corporate purposes.
- Capped call transactions effectively increase the conversion premium from 25% to 100% to mitigate dilution.
- The 4.125% convertible senior notes due 2031 offer a lower cost of capital and flexible settlement options.
- Initial conversion price is ~US$3.68 per share, representing a 25% premium over the last reported sale price.
Price Impact
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