Osisko Gold Prices Upsized $600M Senior Secured Notes at 9.250% to Refinance Appian Debt and Fund Cariboo Project

The Quick Take

• Osisko Gold (OGG) prices an upsized $600M offering of 9.250% senior secured notes due 2031, with the deal size increased from the originally marketed amount to meet strong institutional demand
• Net proceeds will refinance existing debt owed to Appian Capital Advisory and fund continued development of the high-grade Cariboo gold project in British Columbia
• The successful upsized offering reflects persistent institutional appetite for high-yield gold mining paper amid elevated spot prices, with the 9.250% coupon offering meaningful real yield in the current rate environment

Osisko Gold has priced a $600 million offering of senior secured notes at 9.250% due 2031, with the transaction upsized from the original marketed amount following strong institutional book building. The proceeds serve two distinct corporate finance objectives: fully refinancing the existing Appian Capital debt facility that was put in place during an earlier phase of the company’s capital structure evolution, and providing committed development capital for the Cariboo gold project in British Columbia. The Cariboo asset is one of Canada’s largest undeveloped gold deposits, and securing long-dated funding removes a key overhang from Osisko’s investment thesis.

The 9.250% coupon positions this deal at the upper end of investment-grade-adjacent high yield, reflecting the secured nature of the notes and the underlying gold asset collateral, while pricing at a spread that institutional investors found attractive relative to current risk-free rates. The fact that the deal was upsized signals that demand from high-yield bond funds and crossover accounts exceeded initial expectations, suggesting that the gold mining sector’s credit profile has benefited from sustained elevated gold prices that have materially improved cash flow generation and debt service coverage ratios across the sector.

For Osisko Gold’s equity story, eliminating the Appian facility removes a near-term maturity risk and replaces it with longer-dated financing matched to the expected construction and ramp-up timeline of the Cariboo project. Investors in the notes gain exposure to a secured claim on one of the highest-grade undeveloped gold assets in North America. The capital markets execution also validates management’s ability to access bond markets at scale, reducing uncertainty around the broader Cariboo development funding plan and potentially pulling forward the timeline to first gold pour.

Synthesized from 1 source.