Loan & DebtMay 21, 2026, 01:16 AM
Osisko Development Prices US$275M Convertible Senior Notes
AI Summary
Osisko Development Corp. announced the pricing of US$275.0 million aggregate principal amount of 4.125% convertible senior notes due 2031 in a private placement. The notes were offered to qualified institutional buyers and an affiliate, with an initial conversion premium of approximately 25.0%. Net proceeds, estimated at approximately US$215.9 million from the offering and US$50.0 million from the private placement, are intended for the development of the Cariboo Gold Project, general corporate purposes, and to cover the cost of associated cash-settled capped call transactions.
Key Highlights
- Osisko Development priced US$275.0 million aggregate principal amount of 4.125% convertible senior notes due 2031.
- US$225.0 million of notes were purchased by qualified institutional buyers, and US$50.0 million by an affiliate.
- Net proceeds from the offering are estimated at US$215.9 million (or US$240.0 million if the option is fully exercised).
- Net proceeds from the private placement are estimated at US$50.0 million.
- Approximately US$36.9 million of net proceeds will cover the cost of cash-settled capped call transactions.
- The initial conversion rate is 272.1088 Common Shares per US$1,000 principal, equivalent to US$3.68 per share.
- Capped call transactions have a cap price of US$5.88 per share, a 100% premium to the May 20, 2026 closing price.
Price Impact
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