Arrium refinances $US725m in debt

Iron ore miner says lenders' support shows their continued confidence in the company.

Arrium (ARI) has refinanced $US725 million ($A770.4m) of debt that was due to mature in the second half of 2015.

Arrium shares were 3.89% lower at 80.25c at the 10.15am (AEST) official market open, against a benchmark index fall of 0.35%, as a fall in the iron ore price weighed.

The iron ore miner said the refinancing was scaled back after being substantially over-subscribed and includes domestic and offshore lenders.

The refinancing is made up of $A255m, $US250m and $CAD260m, with maturities of four and five years, Arrium said. 

The company's average interest rate for its total drawn and undrawn debt facilities is expected to stay at approximately 4%.

Arrium chief financial officer Robert Bakewell said the refinancing was "very well supported by our core lenders and is a reflection of their continued confidence in Arrium".

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles