Fortescue (ASX:FMG) completes $1.5B bond offering

Company News

by Katrina Bullock

Fortescue (ASX:FMG) and its subsidiaries launched a high yield bond offering of US$750 million of senior unsecured notes, which has today been upsized to $US1.5 billion as a result of strong demand.

The notes will be issued at an interest rate of 4.375 per cent, maturing in April 2031.

The proceeds from this offering of unsecured notes will be used to repay Fortescue’s $US750 million 2022 senior unsecured notes and to repay other debts.

Fortescue chief executive Elizabeth Gaines says the company’s “balance sheet is structured on low cost, investment grade terms, maintaining flexibility to support ongoing operations and the capacity to fund future growth.”

Shares in Fortescue Metals Group (ASX:FMG) are trading 0.74 per cent lower at $20.15.