Ride the Tiger with CD Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ride the Tiger with CD

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Claude Cormier who wrote (141423)	1/17/2009 11:09:35 AM
From: Tommaso	Read Replies (1) of 313017

Does this make NGD look a little better? New Gold to wipe out $50-million of debt 2009-01-09 06:14 MT - News Release Mr. Robert Gallagher reports NEW GOLD REDUCES DEBT POSITION BY C$50 MILLION New Gold Inc. has agreements with certain noteholders that will reduce its debt position by $50-million through the buy back of a portion of its senior secured notes with a face value totalling $50-million for consideration of $30-million. The purchase and cancellation of these notes reduces New Gold's senior secured notes debt from $237-million to $187-million, and results in a reduction of $5-million per year in interest payments. This transaction will also result in an estimated pretax gain of approximately $14-million (U.S.) in the first quarter of 2009. Robert Gallagher, president and chief executive officer, said: "The opportunity to purchase $50-million of our outstanding debt at a considerable discount to face value significantly strengthens our balance sheet and is consistent with our strategy to maintain a solid financial position." As a result of this transaction, New Gold's total debt will be reduced to $242-million which comprises $187-million of the senior secured notes at an interest rate of 10 per cent, expiring June, 2017, and $55-million of the convertible debentures at an interest rate of 5 per cent, expiring June, 2014. New Gold had previously reported that as of Sept. 30, 2008, it had cash and cash equivalents of $251-million (U.S.). We seek Safe Harbor.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next