FMG refinances more debt

FORTESCUE Metals Group has completed a US$500 million high-yield bond offering to refinance debt and further lower borrowing costs.

FMG refinances more debt FMG refinances more debt FMG refinances more debt FMG refinances more debt FMG refinances more debt

The company today priced an offering of $500 million 5.125% senior unsecured notes due in 2023.

FMG chief financial officer Ian Wells said the success of the issue reflected the continued support of the US capital markets.

The proceeds will be used to refinance a further $500 million of the 9.75%, $2.16 billion senior secured notes.

The 9.75% notes will be redeemed through a combination of the new notes and the $1.4 billion term loan secured last week.

The move lowers FMG’s annual borrowing costs by around $130 million.

FMG CEO Elizabeth Gaines said the company was pleased with its refinancing transactions, which resulted in a more flexible, lower ...