Osisko Development $300M convertible + capped call
NYSE: ODV · 4.125% coupon · May 26, 2026 · matures Jun 15, 2031 · ~$40.2M capped call hedge
Note investor receives
$1,088
272 shares @ $4.00
ODV's net cost
$1,000
par equivalent
Capped call pays ODV
$88
cash from banks
Effective dilution
0.0%
fully offset by hedge
Effective cost of capital
7.48%
XIRR vs 4.125% nominal coupon
Illustrative annual cash flow (issuer perspective) — Effective cost of capital calculation
| Category | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|
| Net |
The presented scenario analysis is for illustrative purposes only and is based on a number of assumptions; actual outcomes may differ materially. Key assumptions include: Notes principal is repaid in total in cash at maturity; settlement of Notes and capped call occurs at maturity; assumes the Company settles the convert on a net share basis. The Company may elect to settle conversions in cash, common shares, or a combination of cash and shares, at its option. Per $1,000 face. Strike $3.675 (25% premium), cap $5.88 (100% premium), ~272.1 shares per note. 4.125% coupon semi-annual on Jun 15 / Dec 15, first payment Jun 15, 2026 (19-day stub, 30/360 prorated to $2.18). XIRR computed on actual dates with Actual/365 discounting. $40.2M capped call premium ($134/note). Dilution computed on a fully-diluted (post-issuance) basis against 304.7M shares outstanding (as of March 31, 2026): new shares / (existing + new shares). The capped call must be settled in cash, and assumes its proceeds are used to buy back dilutive shares at the same price used to calculate the number of shares issuable upon conversion.
This analysis does not constitute investment, legal, tax or accounting advice, nor an offer to sell or a solicitation of an offer to buy any securities. Please refer to Osisko Development's news release dated May 21, 2026 (Osisko Development Announces Pricing of US$275.0 Million Aggregate Principal Amount of 4.125% Convertible Senior Notes Offering (25.0% Conversion Premium)) and the Company's continuous disclosure documents filed on SEDAR+ and EDGAR for complete terms and risk factors.