Fortescue sets Friday bank meeting, outlines $7.39 billion loan package for refinancing

By Paul A. Harris

Portland, Ore., March 5 – Australia’s Fortescue Metals Group set a bank meeting for Friday morning to roll out $7.39 billion of bank loan debt, according to an informed source.

The deal, which is being led by Credit Suisse Securities (USA) LLC, is comprised of a new $2.5 billion seven-year senior secured term loan and a $4,888,000,000 tack-on that will extend its existing term loan due June 30, 2019 to a seven-year maturity.

Both tranches are talked at Libor plus 425 basis points to 450 bps with 1% Libor floors.

The new term loan is talked at 99. Investors will roll into the extension at par and receive a 25 bps fee.

Both tranches have 12 months of soft call protection at 101.

Commitments for the tack-on loan are due on March 13. Commitments for the new loan are due on March 18.

Proceeds will be used to extend the term loan maturity and to refinance senior unsecured notes.

The borrowing entities are Fortescue Resources, FMG America and FMG Finance, Inc., wholly owned subsidiaries of the East Perth, Australia-based iron ore producer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.