Osisko Gold Royalties Ltd. said Oct. 16 that it entered into an agreement with a syndicate of underwriters to purchase, on a bought-deal basis, an aggregate principal amount of C$260 million of convertible unsecured debentures.
The offering will be comprised of a C$160 million public offering and a C$100 million private placement of debentures, carrying an interest rate of 4% per annum, payable semiannually and maturing on Dec. 31, 2022. PSP Investments has committed to purchase the C$100 million of debentures through the private offering.
The debentures will be convertible at the holder's option into Osisko common shares at a conversion price of C$22.89 per share.
Underwriters for the offering are co-led by National Bank Financial Inc., BMO Capital Markets and Desjardins Capital Markets, which were granted an option to increase the size of the private offering by up to C$40 million, up to 48 hours prior to the closing, expected to occur on Nov. 3.
Proceeds from the offering will be used to fund the acquisition of precious metal royalties and streams, working capital and general corporate purposes.