New Issue: Australia’s Fortescue prices upsized $1.5 billion two-part deal

By Paul Deckelman

New York, May 9 – Fortescue Metals Group Ltd. was heard by high-yield syndicate sources to have priced an upsized $1.5 billion two-part offering on Tuesday.

The deal consisted of $750 million 4¾% five year notes and $750 million seven-year notes.

The deal, which will settle on May 12, was upsized from an originally shopped $1 billion, the sources said.

The Rule 144A and Regulation S transaction was brought to market via J.P. Morgan Securities LLC, Credit Suisse, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.

The East Perth, Western Australia-based iron ore mining company’s FMG Resources (August 2006) Pty Ltd. subsidiary will be the official issuer of the notes.

The notes will be non-callable for the life of the issue, other than via a call at par within three months of maturity for both tranches.

Fortescue – Australia’s third-largest iron ore producer and the world’s fourth-largest exporter into the seaborne iron-ore market – plans to use the new-deal proceeds to repay term loan debt. It has $976 million of such debt outstanding scheduled to mature in 2019.

© 2015 Prospect News.
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