(All dollar figures are in US dollars unless otherwise indicated)
TORONTO, June 5, 2017 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE MKT:NGD) today announces that it has completed the previously announced redemption of its outstanding $300 million 7.00% Senior Notes due 2020. The redemption was funded from the net proceeds of its recent issue of $300 million aggregate principal amount of 6.375% Senior Notes due in 2025 and cash on hand.

"With the redemption of our 2020 Senior Notes, New Gold has further enhanced its financial flexibility," stated Brian Penny, Executive Vice President and Chief Financial Officer. "Consistent with the multiple steps we have taken this year to strengthen our liquidity position and reinforce our balance sheet, we are pleased that through these transactions, we have been able to both extend the term of our debt and reduce our interest rate."

Also, New Gold announces today that it has amended its $400 million revolving credit facility to extend the maturity date of the agreement by one year to August 2020. Further, in order to provide additional flexibility, the company has amended the credit facility's Net Debt to EBITDA ("Leverage Ratio") covenant, to increase the maximum Leverage Ratio to 4.5 to 1.0 from July 1, 2017 to September 30, 2017 (previously 4.0 to 1.0) and 4.0 to 1.0 from January 1, 2018 to March 31, 2018 (previously 3.5 to 1.0). At March 31, 2017, $100 million has been drawn and $123 million has been used to issue letters of credit for closure obligations at the company's producing mines and development projects, leaving $177 million undrawn.

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