Fortescue wipes out more debt

4th May 2016 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH ( – Iron-ore major Fortescue Metals has issued a $650-million repayment issue for its 2019 senior secured term loan.

The repayment comes just days after the miner announced a $577-million repayment of senior unsecured notes.

CEO Nev Power said on Wednesday that the $650-million term loan repayment would be made at par from accumulated cash on May 16, and would generate interest savings of around $28-million a year.

“We are committed to ongoing debt reduction and have accelerated the repayment of the term loan and notes on the back of strong cash flows from sustainable operational efficiencies and cost reductions,” he said.

With the latest repayments, Fortescue’s total 2016 debt repayments have increased to $2.3-billion, generating annual interest savings of around $164-million.