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.