Australia's Fortescue prices $1.50 billion notes at 7% coupon
Nov 5 (Reuters) - Australian iron ore miner Fortescue FMG.AX said on Thursday it priced a $1.50 billion senior unsecured notes offering at a coupon of 7% per annum.
Here are the details :
The six-year notes will be issued by wholly owned subsidiary Fortescue Treasury and guaranteed by the iron ore miner, with settlement expected on November 12
Fortescue said it would swap the US dollar proceeds into offshore Chinese yuan renminbi (CNH), resulting in an effective interest rate of about 3.9% per annum
The transaction converts the US dollar obligations into a fixed-rate CNH liability of about 9.95 billion yuan ($1.49 billion)
The world's fourth-largest iron ore miner said proceeds from the offering would be used for general corporate purposes, including the potential repayment of debt
The notes are expected to mature in November 2032
The offering demonstrates the continued support for Fortescue in the US debt capital markets, and extends its debt maturity profile, CFO Apple Paget said
Fortescue shares rose as much as 6.1% to A$15.06, logging their best intraday percentage gain since March 13
($1 = 6.6731 Chinese yuan)