Wednesday March 18, 2015: Shares in Fortescue Metals Groups (FMG) fell more than 6 per cent this morning after the iron ore miner revealed it had abandoned plans to refinance US$2.5b of its debt.
FMG admitted it had failed to secure suitable terms and conditions, citing volatility in US credit markets.
The refinancing was aimed at buying FMG more time with its creditors and reducing its substantial interest burden.
"Debt capital markets were not favourable at this time and as a result we think it is a disciplined and prudent decision to defer the voluntary refinancing at this stage," FMG chief executive Nev Power said.
FMG has to start repaying its debt mountain from April, 2017.
FMG shares were 12c lower at $1.85 in early trading.
FMG admitted it had failed to secure suitable terms and conditions, citing volatility in US credit markets.
The refinancing was aimed at buying FMG more time with its creditors and reducing its substantial interest burden.
"Debt capital markets were not favourable at this time and as a result we think it is a disciplined and prudent decision to defer the voluntary refinancing at this stage," FMG chief executive Nev Power said.
FMG has to start repaying its debt mountain from April, 2017.
FMG shares were 12c lower at $1.85 in early trading.