FMG Resources launches $1 billion term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, May 23 - FMG Resources Pty Ltd. is talking its $1 billion six-year senior unsecured term loan that launched on Monday at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The loan is non-callable for two years, then at 102 in year three and 101 in year four, the source said.

The company's $1.5 billion senior unsecured credit facility (B1/B+/BB+) also includes a $500 million three-year revolver that is being negotiated with a syndicate of banks.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBS Securities Inc. are the joint bookrunners on the deal.

Proceeds will be used to help fund the $8.4 billion expansion to 155Mtpa and for liquidity and for general corporate purposes.

Closing is expected by early June.

FMG Resources is an Australian-based iron ore mining company.

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