New Gold sets price for $400 million senior notes offering

TORONTO - New Gold Inc. (TSX: NYSE:NGD) (NYSE American: NGD), an intermediate mining company with strong financial metrics according to InvestingPro data, announced today the pricing of a $400 million offering of 6.875% Senior Notes due 2032. The company’s healthy current ratio of 1.39 and moderate debt-to-equity ratio of 0.38 indicate solid financial positioning for this offering. The company expects the offering to close on March 18, 2025, subject to standard closing conditions. The proceeds from the sale, along with available cash, are earmarked to fund the repurchase of its outstanding 7.50% senior notes due 2027 and to cover related fees and expenses. InvestingPro analysis shows the company’s cash flows can sufficiently cover interest payments, supporting this refinancing strategy.

New Gold has also initiated a tender offer to buy back any and all of its existing senior notes, which is not contingent on a minimum principal amount being tendered. The remaining proceeds, if any, will be used to redeem any of the existing notes not acquired in the tender offer, with a redemption planned for approximately July 15, 2025, at their full principal value.

The new senior notes are being sold to qualified institutional buyers in the United States and to non-U.S. persons outside the United States, in line with the Securities Act of 1933, as amended, and other relevant regulations. In Canada, the notes will be sold through private placement, using certain prospectus exemptions.

The notes have not been registered under the Securities Act, and, as such, may not be offered or sold within the United States or to U.S. persons without registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws. This announcement does not constitute an offer to sell or a solicitation of an offer to buy the notes, nor does it constitute an offer to buy or a solicitation of an offer to sell any existing notes in the tender offer. Furthermore, it is not a notice of redemption for the existing notes.

New Gold, with its headquarters in Canada, operates two core assets: the Rainy River gold mine and the New Afton copper-gold mine. The company’s vision is to establish itself as a leading, diversified intermediate gold company in Canada, with a commitment to environmental and social responsibility. Recent financial performance has been impressive, with revenue growth of 17.55% and EBITDA of $428.5M in the last twelve months. For detailed analysis and additional insights, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top stocks with expert analysis and actionable intelligence.

This news release contains forward-looking statements regarding the completion and timing of the notes offering, the intended use of the proceeds, and the company’s plan to redeem any existing notes not tendered. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated. New Gold does not commit to updating any forward-looking statements, except as required by applicable securities laws. This news is based on a press release statement.

In other recent news, New Gold Inc. reported record revenue of $262 million for the fourth quarter of 2024, although earnings per share of $0.07 fell short of analyst expectations of $0.0754. The company has launched a $400 million senior notes offering, with proceeds intended to repurchase its existing 7.5% senior notes due in 2027. S&P Global Ratings upgraded New Gold’s issuer credit rating from ’B’ to ’B+’, citing stronger-than-expected cash flows and leverage measures, while Moody’s revised the company’s outlook from stable to positive, assigning a B3 rating to the new notes. BMO Capital Markets maintained its Outperform rating for New Gold, with a price target of C$5.50, noting that the company’s adjusted earnings per share aligned with their forecast. New Gold’s financial performance has been bolstered by increased gold and copper production, as well as improved cost management. The company is expecting significant free cash flow generation over the next few years, driven by higher production and declining capital expenditures. Additionally, New Gold has increased its ownership in the New Afton mine and achieved commercial production at the C-zone, contributing to its operational growth.

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