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.

Click here for the full Mineweb report

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