Fortescue Metals Completes US$750 Million Debt Tender

Fortescue Metals (ASX:FMG) announced that it has accepted a debt tender to repay US$750 million of principle of the 2019 8.25 percent and 2022 6.875 percent senior unsecured notes.
As quoted in the press release:

The purchase of the Notes, which will settle on 30 November 2015, has resulted in the Company recognising a US$124 million pre-tax gain and a saving of approximately US$56 million in interest annually. The total principal value of debt repurchased during FY16 is now US$1,134 million which has generated, in aggregate, pre-tax gains of US$192 million and annualised interest savings of US$88 million.
As the aggregate principal of Notes tendered exceeded US$750 million as of 24 November 2015, Notes tendered after this date will not be purchased pursuant to this tender offer. The attached press release is required for U.S. regulatory purposes and sets out details of the tender offer. This ASX release does not constitute an offer to participate in the tender offer. The tender offer was made pursuant to an offer to purchase and a related letter of transmittal.

NevPower, CEO of Fortescue Metals, commented:

We continue to focus on activities which strengthen Fortescue’s competitive position in the global iron ore market. Our operational performance and ongoing commitment to savings has enabled Fortescue to continue its debt repayment program whilst maintaining strong cash balances.

Click here to read the full Fortescue Metals (ASX:FMG) press release.