Osisko Development (ODV.V), down 2.2% at last look in U.S. after-hours trading, said Tuesday it closed a private placement offering of US$225 million aggregate principal amount of 4.125% convertible senior notes due 2031.
The company said net proceeds from the offering are expected to total about US$215.9 million after deducting commissions and estimated offering expenses, but before deducting the cost of capped call transactions.
Osisko said the proceeds will be used to fund capped call transactions entered into with certain financial institutions in connection with the offering, as well as for the development of the Cariboo Gold Project and general corporate purposes.
The company added that the initial purchasers of the notes have been granted an option to purchase up to an additional US$25 million aggregate principal amount of notes.
Separately, Double Zero Capital LP, an affiliate of the company, agreed to purchase US$50 million aggregate principal amount of the notes in a concurrent private placement.
Shares of the company were down US$0.06 to US$2.72 at last look in US after-hours trading, after closing C$0.01 down to C$3.84 on TSX Venture Exchange.