New Gold Inc. (NYSE:NGD) is one of Goldman Sachs’ top penny stock picks. On June 11, the company announced the intention to redeem the remaining $111 million aggregate principal amount of its 7.50% 2027 Notes.
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The intended redemption date is July 15, 2025, as stipulated in the terms of the indenture governing the notes. The redemption will be funded using the remaining proceeds from the company’s March 2025 senior notes offering of $400 million in 6.875% Senior Notes due 2032, combined with cash on hand.
On March 4, 2025, New Gold launched a cash tender offer to purchase all outstanding 7.50% Senior Notes due 2027. The offer would be funded by the $400 million senior notes offering. The tender offer, which expired on March 13, 2025, with settlement completed on March 18, 2025. The remaining notes, as previously noted, will be redeemed on July 15, 2025, at 100% of the principal amount, plus accrued and unpaid interest. In other words, the redemption of the remaining $111 million completes this debt management strategy.
New Gold Inc. is a Canadian intermediate gold mining company. It owns and operates two core assets: the Rainy River gold-silver mine in Ontario and the New Afton copper-gold mine in British Columbia. The company explores gold, silver, and copper, serving global commodity markets through direct sales and long-term contracts.
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This article is originally published at Insider Monkey.
