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Prospect News home > News index > List of issuers F > Headlines for Fortescue Metals Group Finance Pty. Ltd. > News item |
Fortescue Metals launches $4.5 billion term loan at Libor plus 475 bps
By Sara Rosenberg
New York, Oct. 3 - Fortescue Metals Group launched its $4.5 billion five-year covenant-light senior secured term loan (Ba1/BB+/BBB-) on Wednesday with price talk of Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.
The loan has 101 soft call protection for one year, the source said.
Commitments are due on Oct. 10.
Credit Suisse and J.P. Morgan Securities LLC are the lead banks on the deal.
Proceeds will be used to refinance all of the company's existing bank debt and to provide additional liquidity.
The facility extends the earliest repayment date for any of the company's debt to November 2015 and removes financial maintenance covenants that applied under previous facilities.
Fortescue is an East Perth, Australia-based iron ore producer.
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