Published on 5/4/2017 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: New Gold prices $300 million eight-year notes at par to yield 6 3/8%
By Paul A. Harris
Portland, Ore., May 4 – New Gold Inc. priced a $300 million issue of eight-year senior notes (B3/B) at par to yield 6 3/8% on Thursday, according to market sources.
The yield printed at the tight end of yield talk in the 6½% area and tighter than the 6½% to 6¾% initial guidance.
J.P. Morgan Securities LLC, BofA Merrill Lynch, RBC Capital Market Corp., Scotia Capital, BMO Securities, CIBC World Markets and TD Securities were the underwriters.
The Toronto-based gold mining company plans to use the proceeds, together with cash on hand, to fund the redemption of its $300 million of 7% senior notes due 2020.
| Issuer: | New Gold Inc.
|
| Amount: | $300 million
|
| Tenor: | Eight years
|
| Securities: | Senior notes
|
| Underwriters: | J.P. Morgan Securities LLC, BofA Merrill Lynch, RBC Capital Markets Corp., Scotia Capital, BMO Securities, CIBC World Markets, TD Securities
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Call protection: | Three years
|
| Trade date: | May 4
|
| Settlement date: | May 18
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% area
|
| Marketing: | Quick to market
|
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