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Fortescue looks to refinance

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In a bid to reduce its interest rate, Fortescue Metals Group has announced it is looking to amend and re-price its $US5 billion senior secured credit facility.

The credit facility is currently due to mature in October 2017 and has a total coupon of 5.25 per cent.

Fortescue said current market conditions has enabled the company to pursue an amendment which it says will reduce the interest rate payable, reduce the cost of capital and extend the maturity of the term of the loan.

The iron ore miner noted that repricing the facility will not increase FMG’s debt position and it will retain the ability to make early repayments on the facility.

The terms and conditions of the facility will also remain consistent with the company’s unsecured notes and do not contain financial maintenance covenants.

The amendment proves is expected to take two weeks to finalise and will be subject to the receipt of both pricing and market conditions.

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