PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has issued a $1-billion repayment notice for its 2019 senior secured credit facility, resulting in annual interest savings of around $38-million.
“This $1-billion payment is a continuation of our focused debt repayment strategy and further lowers our total cash position. Fortescue’s nearest debt maturity is in June 2019, and is now less than $2-billion with gross gearing falling below our targeted 40% level once this payment is made,” said Fortescue CEO Nev Power.
“Our productivity and efficiency initiatives have achieved sustained cost reductions and combined with buoyant market conditions, are generating significant free cash flow which will further strengthen Fortescue’s balance sheet.”