New Gold Announces Pricing of $400 Million Senior Notes Offering
Toronto, March 4, 2025 – New Gold Inc., a leading gold mining company with operations in North America (TSX: NGD, NYSE American: NGD), is pleased to announce the pricing of its previously announced offering of $400 million aggregate principal amount of 6.875% Senior Notes due 2032 (the “Notes”).
Details of the Offering
The Notes will be issued at par and will bear interest at a rate of 6.875% per annum. The offering is expected to close on or about March 18, 2025, subject to customary closing conditions.
Impact on New Gold
The proceeds from the offering will be used to repay a portion of the Company’s existing debt and for general corporate purposes. This move will strengthen New Gold’s balance sheet and improve its financial flexibility, enabling the company to focus on its growth strategies.
Impact on Investors
The offering presents an opportunity for investors to earn a decent return on their investment, as the 6.875% coupon rate is higher than the current benchmark rates. It also signals New Gold’s confidence in its business outlook and its ability to access capital markets at favorable terms.
Impact on the Mining Industry
New Gold’s successful offering is a positive sign for the mining industry, which has been grappling with volatile commodity prices and access to capital. The offering demonstrates that mining companies can still attract investment from the capital markets, despite the challenges faced by the sector.
Additional Information
- The Notes will be guaranteed on a senior unsecured basis by each of the Company’s existing and future subsidiaries that guarantees its senior indebtedness.
- The Notes will be registered under the Securities Act of 1933, as amended, and will be offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act of 1933, as amended.
Conclusion
New Gold’s successful offering of $400 million in 6.875% Senior Notes due 2032 is a positive development for the Company, its investors, and the mining industry. The proceeds will help New Gold strengthen its balance sheet and improve its financial flexibility, while providing investors with an attractive return. The offering also serves as a reminder that despite the challenges faced by the mining sector, companies can still access capital markets at favorable terms.
Investors and security holders are encouraged to consult the Company’s periodic reports filed with the Securities and Exchange Commission for more detailed information.
