PERTH (miningweekly.com) – Iron-ore miner Fortescue Metals has moved to capitalise on a slight rebound in the iron-ore price, launching a $1.5-billion senior secured note offering to finance the redeeming of notes due in 2017 and 2018.
The launch of the high yield bond offering comes just a month after the miner scrapped a $2.5-billion senior secured note offering and refinancing plan.
Fortescue in March launched the initial $2.5-billion senior secured debt issue, and offered holders of its 2017, 2018 and 2019 senior unsecured notes the opportunity to tender their notes for repurchase, subject to a cap on the 2019 notes. However, the deal was scrapped, with Fortescue blaming volatility in the US credit markets, resulting in terms and conditions that did not meet the company’s cost objectives.
The iron-ore major said on Thursday that proceeds from the new bond offering would be used to redeem the 2017 and 2018 senior unsecured notes.