Home > Twiggy ups his FMG stake, miner successfully re-prices debt facility

Twiggy ups his FMG stake, miner successfully re-prices debt facility

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Fortescue Metals Group chairman Andrew Forrest splashing out nearly $AU11 million on FMG shares last week as the company amends its debt facility.

Increasing his 33 per cent stake in the iron ore company, Forrest upped his interest by two million shares last week bringing his total share worth to about $6 billion.

The company has also announced it has successfully refinanced its senior secured credit facility, lowering its interest payments on its $US5 billion debt pile which FMG says willdeliver interest savings of about $US50 million a year.

Credit Suisse and JP Morgan have repriced FMG’s interest rate margin down from 4.25 per cent to 3.25 per cent and have extended the maturity date by two years to June 30, 2019.

"The result again demonstrates the market's confidence in our strategy of ramping up production and then progressively repaying the debt that has funded our expansion," chief executive Nev Power said.

Fortescue chief financial officer Stephen Pearce said over the past 12 months the company has reduced costs and focused on ramping up production.

“With stable iron ore market conditions and the commitment to actively reduce debt in advance of formal maturity the company is in a very strong financial position,” he said.

The miner announced in October it was looking to amend and reprice its senior secured credit facility.

At the time FMG 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.

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