Fortescue Metals Group Limited
(ASX:FMG) is launching a US$750 million debt repayment offer for the 2019 8.25 percent and 2022 6.875 percent senior unsecured notes via a tender.
The iron ore miner has offered to purchase up to US$750 million in aggregate principal via a modified Dutch Auction.
Fortescue Metals Chief Executive Officer Nev Power said accelerating Fortescue’s debt repayment through this tender would further reduce the company’s interest costs, while ensuring the miner remains on track to achieve its initial gearing target of 40 percent.
Chief Financial Officer Stephen Pearce said that the tender offer will be finalised over the next few weeks.
Fortescue Metals reported a net profit of $411.46 million at 30 June 2015.
