Fortescue bond offering in response to strong capital market interest

Apr 22, 2015

Fortescue has commenced a Secured Note offering in the United States, capitalising on strong interest from debt capital markets and its solid fourth quarter production report. 

Fortescue tonight (Australian time) launched an offering of US$1.5 billion Secured Notes with the proceeds to be used to redeem its 2017 and 2018 Unsecured Notes. 

Fortescue Chief Executive Officer Nev Power said: “The principal objective of this refinancing is to extend Fortescue’s debt maturity profile well in advance of due dates”. 

Fortescue’s current debt maturity profile is shown below, noting the earliest maturities, in 2017 and 2018, will be redeemed as part of this transaction.

150422 Graph 1

Fortescue has a high level of flexibility and no maintenance covenants in its debt capital structure. Fortescue’s most recent quarterly report was released on 31 March 2015 and is available at http://www.fmgl.com.au/Investors_and_Media/ASX_Announcements

A further update on the refinancing will be provided upon completion.