Ann: Fortescue announces multi-billion dollar refinancing, page-2

Fortescue announces multi-billion dollar refinancing Fortescue Metals Group (ASX:FMG) has announced the launch of a new US$2.5 billion Senior Secured debt issue and an offer to holders of its 2017, 2018 and 2019 Senior Unsecured Notes (“the Notes”) to tender their Notes for repurchase, subject to a cap on the 2019 Notes.
Fortescue also intends to extend the maturity on its existing US$4.9 billion Senior Secured Credit Facility resulting in the majority of its debt maturing beyond mid 2021, further strengthening Fortescue’s balance sheet.
Chief Executive Officer Nev Power said, “The refinancing will extend Fortescue’s debt maturity profile while maintaining flexibility and minimising interest cost.
This initiative complements the great work done in reducing costs and improving productivity and efficiency across all of Fortescue’s operations.” The Terms and Conditions of the new Senior Secured debt issue will be consistent with the company’s existing debt facilities.
Chief Financial Officer Stephen Pearce noted that the refinancing and liability management exercise is commonplace in the US debt capital market and will be finalised over the next few weeks, subject to satisfactory pricing and terms for the refinancing.
The attached release sets out details of the tender process for the 2017, 2018 and 2019 Notes.
Yours sincerely Fortescue Metals Group Ltd