Coeur Mining completed a debt‑for‑debt exchange of its own 6.875% senior notes due 2032 for New Gold Inc.’s 6.875% senior notes due 2032, with settlement on April 22, 2026. The exchange involved Coeur issuing $385.774 million of its senior notes and paying $771,600 in cash, while accepting 96.45% of the outstanding New Gold notes, totaling $385.8 million in principal.
The transaction was designed to avoid a mandatory repurchase that would have been triggered by the change‑of‑control clause in New Gold’s indenture, and to eliminate restrictive covenants, thereby consolidating debt under Coeur and aligning noteholders with the combined entity.
The exchange is part of the broader Coeur‑New Gold merger announced November 3, 2025, an all‑stock deal valued at roughly $7 billion and expected to close in the first half of 2026. Shareholder approval was obtained in January 2026, and the merger is projected to create a combined company with an estimated market cap of $20 billion and projected 2026 EBITDA of $3 billion.
Management emphasized the strategic fit: Mitchell J. Krebs said, "This transaction provides clear and compelling benefits for New Gold and Coeur shareholders by bringing together two companies with similar cultures to create a stronger, more resilient, and larger scale precious metals mining company." The merger is positioned to generate significant cash flow after years of heavy investment.
While no specific market reaction to the debt exchange was reported, the broader merger has been viewed positively by investors.
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