Fortescue cuts spread on $4.95 billion term loan to Libor plus 325 bps

By Sara Rosenberg

New York, Nov. 7 - Fortescue Resources lowered pricing on its $4.95 billion senior secured covenant-light term loan (Ba1/BBB-) to Libor plus 325 basis points, subject to a leverage-based grid, from Libor plus 375 bps, according to a market source.

In addition, the term loan's maturity was changed to June 30, 2019 from five years, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99¾ and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance an existing term loan due October 2017 that is priced at Libor plus 425 bps with a 1% Libor floor.

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

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