Fortescue Metals plans $4.5 billion covenant-light credit facility

By Sara Rosenberg

New York, Sept. 21 - Fortescue Metals Group has received a commitment for a $4.5 billion five-year covenant-light senior secured credit facility, according to a news release.

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, the release said.

Fortescue is an East Perth, Australia-based iron ore producer.

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