Osisko Gold Royalties closes $300M offering led by PSP Investments

Osisko Gold Royalties Ltd (TSX/NYSE: OR) has completed its previously announced bought deal offering of convertible senior unsecured debentures in an aggregate principal amount of $300 million.

The offering was comprised of a public offering, by way of a short form prospectus, of $184 million aggregate principal amount of debentures and a private placement offering of $116 million aggregate principal amount of debentures, including the exercise in full of the underwriters’ option.

Pursuant to the private placement, The Public Sector Pension Investment Board (PSP Investments) and Ressources Québec inc., a wholly-owned subsidiary of Investissement Québec (IQ), subscribed $100 million and $16 million of the debentures respectively.

The offering is made by a syndicate of underwriters led by National Bank Financial Inc., BMO Capital Markets and Desjardins Capital Markets and including Macquarie Capital Markets Canada Ltd., RBC Dominion Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., Haywood Securities Inc., Paradigm Capital Inc., and Raymond James Ltd.

Bennett Jones LLP and Stikeman Elliott LLP acted as legal counsel to Osisko and the underwriters respectively.

Osisko plans to use the net proceeds to fund the acquisition of precious metal royalties and streams, working capital and general corporate purposes.

The debentures bear interest at a rate of 4.00% per annum, payable semi-annually on June 30 and December 31 each year, commencing on June 30, 2018. The debentures will be convertible at the holder’s option into common shares at a conversion price equal to $22.89 per share (representing a conversion premium of approximately 40% to the reference price of C$16.35 and a conversion rate of 43.6872 shares per C$1,000 principal amount of debentures). The debentures will mature on December 31, 2022 and may be redeemed by Osisko, in certain circumstances, on or after December 31, 2020.

photo credit: Osisko Gold Royalties