By Paul A. Harris
Portland, Ore., March 18 – Fortescue Metals Group Ltd. priced an upsized $1.5 billion issue of 10-year senior bullet notes (Ba1/BB+) at par to yield 4 3/8% in a Thursday drive-by, according to market sources.
The issue size doubled from $750 million.
The yield printed at the tight end of the 4 3/8% to 4½% yield talk.
The deal was playing to $2.1 billion of demand when price talk came out, a trader said.
JPMorgan was at the left of a syndicate of book managers that also included Morgan Stanley, Citigroup and Credit Suisse.
The Perth, Australia-based iron ore company plans to use the proceed so redeem the FMG Resources August 2006 Pty Ltd. 4¾% notes due 2022 and for general corporate purposes.
| Issuer: | FMG Resources August 2006 Pty Ltd.
|
| Amount: | $1.5 billion, increased from $750 million
|
| Maturity: | April 1, 2031
|
| Securities: | Senior notes
|
| Bookrunners: | JPMorgan, Morgan Stanley, Citigroup and Credit Suisse
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 267 bps
|
| Call protection: | Non-callable
|
| Trade date: | March 18
|
| Settlement date: | March 25
|
| Ratings: | Moody's: Ba1
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 3/8% to 4½%
|
| Marketing: | Drive-by
|
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