Fortescue Metals Group Announces Successful Completion of US$500m High Yield Bond Offering

Fortescue Metals Group Limited (Fortescue) (ASX: FMG) has today priced an offering of US$500 million of 5.125% Senior Unsecured Notes due 2023. The offering is expected to settle on or about 15 March 2018, subject to customary closing conditions.

The existing US$2,160 million Senior Secured Notes will be redeemed through a combination of proceeds from the recently announced US$1,400 million Term Loan and these Senior Unsecured Notes of US$500 million, with the balance redeemed from cash. Upon completion, the combination of refinancing and debt repayment will lower annual borrowing costs by approximately US$130 million.

Fortescue Chief Financial Officer, Mr Ian Wells said “The success of this issue reflects the continued support of the US capital markets and is a key part of executing Fortescue’s capital management strategy. The completion of the offering is another step in the transition from an all-asset secured capital structure to one which reflects that of an investment grade company, delivering low cost flexible debt.”


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