Fortescue Metals’ Group Limited
(ASX:FMG) senior secured debt facility has been repriced by lead arrangers Credit Suisse and JP Morgan.
Fortescue says its previous margin of 4.25 per cent has been reduced by one per cent to 3.25 per cent, while the maturity of the facility had been extended to June 30, 2019.
The one per cent reduction represents an annual interest saving of approximately $US50 million per annum.
The 3.25 per cent margin will decrease further as Fortescue reduces leverage through debt reduction.
The group says the repricing will not increase its debt position and that it could make early voluntary repayments.
Fortescue generated a net profit of $1.9 billion in fiscal 2013.
