By Rhiannon Hoyle
SYDNEY--Fortescue Metals Group Ltd. (FMG.AU) said Friday it has completed a bond offering worth US$600 million that will be used to pay down some existing debt.
The senior unsecured notes, which will attract an interest rate of 4.5%, will be used to repay a portion of the iron-ore miner's existing US$1.4 billion, 2022 syndicated loan facility, Fortescue said. The notes will mature Sep. 15, 2027.
"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 Fortescue's debt at a low cost," said Chief Executive Elizabeth Gaines.
Fortescue is also in negotiations to extend US$600 million of the loan facility to 2025, on the same terms and conditions, said the company. The balance of US$200 million will be repaid in cash, it said.
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