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Osisko Gold Cuts Interest on $450M Appian Loan After Drill Milestone
Osisko Gold cut its $450M Appian loan interest by 50bp on the first draw and 25bp on the second, after Appian confirmed technical conditions from Lowhee drilling were satisfied.
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Osisko Gold Group (NYSE: OGG, TSXV: OGG) said it amended its $450 million senior secured credit facility with funds advised by Appian Capital Advisory, lowering interest rates and removing key technical conditions after a successful infill drill program at the Cariboo Gold Project.
The amendment reduces the margin on the initial $100 million draw to 9.00% over three-month SOFR, down from 9.50%, and eliminates the 0.10% SOFR adjustment. The margin on the second draw and any subsequent draws falls to 7.25% over SOFR from 7.50%. Osisko also extended its option to pay accrued interest in kind for an additional 12 months.
Appian confirmed that technical conditions tied to the Lowhee Zone infill drilling and ore sorting programs have been satisfied, removing them from the credit agreement. The second draw of $350 million still depends on remaining construction readiness milestones and other customary conditions.