Osisko Development Prices $275 Mln Convertible Senior Notes Offering With 25% Conversion Premium

(RTTNews) - Osisko Development Corp. (ODV), on Thursday announced the pricing of a $275 million aggregate principal amount offering of 4.125% convertible senior notes due 2031 in a private placement.

The notes were priced with a 25% conversion premium.

The offering includes $225 million of notes to qualified institutional buyers.

Double Zero Capital, LP, agreed to purchase $50 million aggregate principal amount of affiliate notes.

The company said that the Initial purchasers were also granted an option to purchase up to an additional $25 million aggregate principal amount of notes.

The company expects net proceeds from the offering of about $215.9 million, or about $240 million if the option is exercised in full, after discounts, commissions, and expenses.

The company expects net proceeds of about $50 million from the private placement.

The proceeds will be used to fund development of the Cariboo Gold Project, pay capped call transaction costs, and for general corporate purposes.

The company said the capped call transactions carry an initial cap price of $5.88 per share, representing a 100% premium to the last reported New York Stock Exchange share price of $2.94 on May 20.

The notes will bear interest at 4.125% annually and mature on June 15, 2031, unless earlier converted, redeemed, or repurchased.

In the pre-market trading, Osisko Development is 15.56% lesser at $2.4700 on the New York Stock Exchange.