Diversified Royalty Raises $60 Million Via Bought Deal Offering of 5.75% Convertible Unsecured Subordinated Debentures

10:40 AM EST, 02/09/2026 (MT Newswires) -- Diversified Royalty (BEVFF) on Monday said it closed its previously announced bought deal public offering of $60 million of 5.75% convertible unsecured subordinated debentures at $1,000 per debenture.

The company said it also granted the underwriters an option to buy up to an additional $9 million of debentures at $1,000 apiece to cover over-allotments, if any, and for market stabilization purposes.

Proceeds will be used to repay outstanding amounts under its acquisition facility, to fund expected additions to the royalty pools of certain of its royalty partners, and for working capital and general corporate needs.

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, starting Sept. 30, 2026. The debentures may also be converted into common shares at the holder's option, 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, at $5.35 per common share.

The company said the debentures are not redeemable on or before March 31, 2029.

Shares of the company were last seen down 0.3% at $4.03 on the Toronto Stock Exchange.

Price: 4.03, Change: -0.01, Percent Change: -0.25

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