https://www.miningweekly.com

Fortescue secures $500m through bond offering

2nd March 2018

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) - Australian iron-ore miner Fortescue Metals Group (FMG) has raised $500-million through offering 5.25% senior unsecured notes, due 2025.

FMG CFO Ian Wells on Friday noted that the completion of the offering was a step in the transition from an all-asset secured capital structure to one which reflected an investment-grade company, delivering low-cost, flexible debt.

The offering was expected to settle around March 15 and would refinance another $500-million of the 9.75% $2.16-billion senior secured notes.

The combination of refinancing and debt repayment will lower Fortescue's yearly borrowing costs by about $130-million.

"The success of this issue reflects the continued support of the US capital markets and is a key part of executing [our] capital management strategy," said Wells.

Fortescue CEO Elizabeth Gaines added that the company would continue to be disciplined in its approach to capital management and debt repayment, as well as reinvestment in its iron-ore business. "[It also identifies] low-cost growth opportunities and delivers returns," she noted.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

M and J Mining
M and J Mining

M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Mining Weekly Editor Martin Creamer
Copper shares soar and green hydrogen goes digital
26th April 2024
Magazine cover image
Magazine round up | 26 April 2024
26th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.133 0.18s - 101pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: