Osisko Gold plans $500M notes offering to refinance debt

Osisko Gold Group Inc. (NYSE: OGG, TSXV: OGG) announced plans to offer US$500 million in senior secured notes due 2031, with proceeds intended to refinance an existing loan facility and fund construction of its Cariboo Gold Project in British Columbia, Canada.

According to a press release, the company intends to use approximately US$120.9 million of the net proceeds to repay and terminate its existing senior secured project loan facility with funds advised by Appian Capital Advisory Limited. The remaining proceeds would fund a segregated interest reserve account covering the first five interest payments on the notes, with the balance directed toward advancing the Cariboo Gold Project.

The notes will be fully and unconditionally guaranteed by certain subsidiaries, expected to include Barkerville Gold Mines Ltd., and secured by a first priority lien on the company's and each guarantor's property, including equity interests, an interest reserve account, a disbursement account, and personal and real property, subject to certain exceptions.

The notes will be offered only to qualified institutional buyers under Rule 144A of the U.S. Securities Act of 1933 and to non-U.S. persons outside the United States under Regulation S. In Canada, the notes will be offered on a private placement basis. The aggregate principal amount, interest rate, and other terms will be determined at pricing, subject to market conditions.

The offering is subject to market and other conditions. The notes have not been registered under the U.S. Securities Act or any state securities laws.

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