New Gold enters agreements to buy back C$50 million 10% notes

By Jennifer Chiou

New York, Jan. 9 - New Gold Inc. announced that it has agreements with some noteholders to repurchase C$50 million of its 10% senior secured notes.

The company said it will pay a consideration of C$30 million.

The purchase and cancellation of these notes reduces New Gold's senior secured notes to C$187 million from C$237 million and results in a reduction of C$5 million per year in interest payments.

"The opportunity to purchase C$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," Robert Gallagher, president and chief executive officer, said in a news release.

New Gold is a Vancouver, B.C.-based mining company.

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