(All dollar figures are in US dollars unless otherwise
indicated)
TORONTO, June 5, 2017 /PRNewswire/ - New Gold Inc. ("New
Gold") (TSX:NGD) (NYSE MKT:NGD) today announces that it has
completed the previously announced redemption of its outstanding
$300 million 7.00% Senior Notes due
2020. The redemption was funded from the net proceeds of its
recent issue of $300 million
aggregate principal amount of 6.375% Senior Notes due in 2025 and
cash on hand.
"With the redemption of our 2020 Senior Notes, New Gold has
further enhanced its financial flexibility," stated Brian Penny, Executive Vice President and Chief
Financial Officer. "Consistent with the multiple steps we have
taken this year to strengthen our liquidity position and reinforce
our balance sheet, we are pleased that through these transactions,
we have been able to both extend the term of our debt and reduce
our interest rate."
Also, New Gold announces today that it has amended its
$400 million revolving credit
facility to extend the maturity date of the agreement by one year
to August 2020. Further, in order to
provide additional flexibility, the company has amended the credit
facility's Net Debt to EBITDA ("Leverage Ratio") covenant, to
increase the maximum Leverage Ratio to 4.5 to 1.0 from July 1, 2017 to September
30, 2017 (previously 4.0 to 1.0) and 4.0 to 1.0 from
January 1, 2018 to March 31, 2018 (previously 3.5 to 1.0). At
March 31, 2017, $100 million has been drawn and $123 million has been used to issue letters of
credit for closure obligations at the company's producing mines and
development projects, leaving $177
million undrawn.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain "forward-looking statements" and
"forward-looking information" within the meaning of applicable
Canadian and U.S. securities legislation. Generally,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of New Gold to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to risks discussed in the
risk factors section in New Gold's latest annual information
form. Although New Gold has attempted to identify important
factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. New Gold does not undertake to update
any forward-looking statements, except in accordance with
applicable securities laws.
SOURCE New Gold Inc.