Fortescue Metals to Extend Debt of $4.9 Billion

Mineweb reported that Fortescue Metals Group Ltd. (ASX:FMG) plans to extend the maturity on debt of $4.9 billion beyond 2021. A plunge in the iron ore price has curbed the company’s profits.

As quoted in the market news:

The Perth-based producer will begin a new $2.5 billion secured debt issue and has made an offer to holders of unsecured notes due to mature between 2017 and 2019 to tender them for repurchase, subject to a cap on 2019 notes, it said today in a statement.

Fortescue, which has already lowered spending plans by half and reduced staff, closed unchanged at $2.29 in Sydney trading and has declined 16 percent this year.

Nev Power, CEO of Fortescue, stated:

The refinancing will extend Fortescue’s debt maturity profile while maintaining flexibility and minimizing interest cost. This initiative complements the great work done in reducing costs and improving productivity and efficiency.

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