I assume the $140m will save $12.6m in interest per annum.
Add to this debt reduction of $500m once FIRM approval is received which should save another $70m based on average interest of 6.88%
That equates to a $640m debt reduction. Based on guidance they are serious about debt reduction.
I believe in 2013/2014 debt will be reduced by at least $1.5b (including above) if not more.
The market should be pleased with this
Interest savings on today's announcement and Formosa will save circa $80m a year which will flow straight to the bottom line
fortescue takes first step in debt reduction, page-2
Add FMG (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$18.97 |
Change
-0.300(1.56%) |
Mkt cap ! $58.40B | |||
| Open | High | Low | Value | Volume |
| $19.01 | $19.33 | $18.71 | $210.2M | 11.07M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1879 | $18.95 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $18.97 | 39173 | 3 |
View Market Depth
| Last trade - 16.10pm 09/10/2024 (20 minute delay) ? |
| FMG (ASX) Chart |