Osisko Gold Completes US$600 Million Aggregate Principal Amount of 9.250% Senior Secured Notes Offering

TORONTO - Osisko Gold Group Inc. successfully issued $600 million in 9.250% senior secured notes with a maturity date of October 1, 2031, on October 10, 2023. These non-callable notes will have their interest payments made semi-annually, beginning on April 1, 2027. The company raised the funds through a private placement to qualified institutional buyers, adhering to Rule 144A and Regulation S under the United States Securities Act of 1933.

After accounting for initial purchaser discounts, commissions, and estimated expenses, the net proceeds amounted to roughly $578.0 million.

A significant portion of the proceeds, approximately $120.8 million, was utilized to settle all existing obligations and terminate commitments under Osisko Gold Group's existing senior secured credit facility with Appian Capital Advisory Limited. The remaining funds were allocated strategically: $50.0 million was set aside in a segregated interest reserve account, covering the first five interest payments on the notes, while the remaining balance was placed in a segregated disbursement account for the Cariboo Gold Project.

The notes are backed by certain subsidiaries, most notably Barkerville Gold Mines Ltd., which holds the Cariboo Gold Project in British Columbia, Canada. Their security is reinforced by a first priority lien on the company's and guarantors' property, encompassing equity interests, interest reserve accounts, disbursement accounts, and both personal and real estate assets, with some exceptions applied.

Osisko Gold Group's projected capital sources between August 1, 2026, and the forecasted commercial production in the second half of 2029 are estimated to total C$1,740 million, with projected expenditures of C$1,525 million, leaving a projected surplus of C$215 million. The initial purchasers acquired the notes at a price of 98.25% of the principal amount.