Friday, January 9, 2009

"New Gold Inc." Lowers Debt by Buying Back Senior Secured Notes

In a move to lower its debt load, New Gold Inc (NGD.TO) bought back C$50 million of its senior secured notes at 40 percent off their face value.

As a result, the senior secured debt load of the company will fall from C$237 million to C$187 million. That will also help the company cut an annual C$5 million in costs related to interest from the lowered debt.

Overall debt for the company will be down to C$242 million at the close of the deal.

New Gold estimates there will be a pre-tax increase of $14 million in the first quarter in response to their actions.

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