VANCOUVER, British Columbia, Feb. 09, 2026 (GLOBE NEWSWIRE) -- Diversified Royalty Corp. (TSX:DIV, DIV.DB.A and DIV.DB.B)) (the "Corporation" or "DIV") is pleased to announce that it has closed its previously announced bought deal public offering (the "Offering") of $60,000,000 aggregate principal amount of 5.75% convertible unsecured subordinated debentures (the "Debentures") at a price of $1,000 per Debenture (the "Offering Price").
The Offering was conducted by a syndicate of underwriters co-led by CIBC Capital Markets, as sole bookrunner, and Desjardins Securities Inc., together with Canaccord Genuity Corp., National Bank Financial Inc., Scotia Capital Inc., ATB Capital Markets Corp., BMO Nesbitt Burns Inc., iA Private Wealth Inc. and Raymond James Ltd. (collectively, the "Underwriters"). DIV also granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional $9,000,000 aggregate principal amount of Debentures at the Offering Price to cover over-allotments, if any, and for market stabilization purposes. The Over-Allotment Option is exercisable in whole or in part by the Underwriters at any time up to 30 days following closing of the Offering.
The net proceeds of the Offering are intended to be used to repay outstanding amounts under the Corporation's acquisition facility, to fund expected additions to the royalty pools of certain of the Corporation's royalty partners, and for working capital and general corporate purposes. The repayment of indebtedness under the Corporation's acquisition facility will thereby increase the amount available to be drawn under the acquisition facility to fund future acquisitions.
The Debentures mature on March 31, 2031 and bear interest at an annual rate of 5.75% payable semi-annually in arrears on the last day of March and September in each year, commencing September 30, 2026. At the holder's option, the Debentures may be converted into common shares of the Corporation ("Common Shares") at any time prior to the close of business on the earlier of the last business day immediately preceding March 31, 2031 and the date fixed for redemption. The conversion price will be $5.35 per Common Share (the "Conversion Price"), subject to adjustment in certain circumstances in accordance with the terms of the trust indenture governing the Debentures dated November 7, 2017, as amended by the first supplemental indenture dated March 30, 2022 and the second supplemental indenture dated February 9, 2026, copies of which will be available on SEDAR+ at www.sedarplus.ca.
The Debentures are not redeemable on or before March 31, 2029. After March 31, 2029 and prior to March 31, 2030, the Debentures may be redeemed in whole or in part from time to time at DIV's option, provided that the volume weighted average trading price of the Common Shares on the Toronto Stock Exchange (the "TSX") during the 20 consecutive trading days ending on the fifth trading day preceding the date on which ...
