Osisko Development (ODV.V) has priced US$275.0 million of 4.125% convertible senior notes due 2031 in a private placement offering to qualified institutional buyers and in a concurrent private placement, the company said on Thursday.
The notes priced with a conversion premium of about 25.0% to the last reported sale price per share of the company's common shares, no par value, at $2.94 per common share on the New York Stock Exchange on May 20.
Qualified institutional buyers have agreed to purchase $225.0 million principal amount of the Notes in the offering. Double Zero Capital an affiliate of the company, has agreed to purchase $50.0 million aggregate principal amount in the concurrent private placement.
Initial purchasers were granted an option to purchase, during a 13-day period starting and including the issuance date, up to an additional $25.0 million of notes.
The offering and the private placement are expected to close on May 26 and May 29, respectively, subject to the satisfaction of customary closing conditions.
Net proceeds are expected to be used for the development of the Cariboo gold project and for general corporate purposes.
A portion of net proceeds will be used to purchase cash-settled capped calls to offset potential economic dilution at a cap price of $5.88 per share, representing a 100% premium to $2.94, being the last reported sale price of the company's common shares on the NYSE on May 20.