Australia's Fortescue prices $1.50 billion notes at 7% coupon

By Reuters News

- 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)

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