Fortescue Metals Group
(ASX:FMG) has issued a US$700 million repayment notice for its 2019 Senior Secured Credit Facility.
The Australian iron ore company says this repayment will be made at par this Friday, and will generate annual interest savings of around US$26 million.
Fortescue also says this repayment adds to the US$2.9 billion which it repaid in FY16 and further reduces its all-in cost base.
The company also says it will continue to apply its free cash flow to repay debt, lower its gearing and strengthen its balance sheet.
Fortescue reported a net profit of $1.3 billion at 30 June 2016.
