PERTH (miningweekly.com) – Iron-ore major Fortescue Metals has completed a $600-million bond offering that will be used to partially repay its $1.4-billion of outstanding debt, due in 2022.
The miner raised the capital through the issue of senior unsecured notes at an interest rate of 4.5%, maturing in September 2027.
CEO Elizabeth Gaines on Friday said that following the record financial results for the 2019 financial year, and the strong start to the 2020 financial year, the ongoing strength of Fortescue’s performance had resulted in the successful execution of the senior unsecured note offering.
“Fortescue’s balance sheet is structured on investment grade terms which have allowed us to take advantage of market conditions to extend the maturity profile of Facebook’s debt at a low cost.
“In addition, we are in negotiations to extend the balance of the 2022 term loan while maintaining optionality and flexibility to ensure the long term sustainability of our operations, invest in growth and development and continue to deliver returns to our shareholders.”
Fortescue is also in negotiations with its existing term lenders to extend the term loan maturities of the remaining $600-million to 2025, on the same terms and conditions. The balance of the term loan of $200-million will be repaid from operating cash.