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Gold/Mining/Energy : Canadian Warrants Only -- Ignore unavailable to you. Want to Upgrade?

To: onepath who wrote (6833)	1/9/2009 9:33:40 AM
From: koan	1 Recommendation Respond to of 23102

New Gold to wipe out $50-million of debt New Gold Inc (C:NGD) Shares Issued 212,840,809 Last Close 1/8/2009 $1.92 Friday January 09 2009 - 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.). © 2009 Canjex Publishing Ltd.