Osisko announces $275m fundraise from convertible senior notes
NYSE- and TSX-listed Osisko Development has announced $275-million worth of convertible senior notes due 2031 in a private placement to institutional buyers.
The 4.125% senior note proceeds will be used to develop the Cariboo gold project, in British Columbia, and for general corporate purposes.
A portion of the net proceeds will, however, be used to purchase cash-settled capped calls to offset potential economic dilution at a cap price of $5.88 apiece, 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.
Qualified institutional buyers have agreed to purchase $225-million of the notes in the offering, including Double Zero Capital which will purchase $50-million of the notes in the private placement.
