Fortescue eyes lower repayments

Group to use credit market conditions to lower interest repayments on debt.

Fortescue Metals Group (FMG) is looking to take advantage of favourable credit market conditions to lower the interest repayments on its debt.

The iron-ore giant will seek to reduce the interest rate applied to its $US5 billion ($A5.24 billion) senior credit facility, that's due to mature in October 2017.

The debt facility currently has a total coupon rate of 5.25%.

Fortescue said its most recent quarterly results, which showed it was shipping more and receiving higher prices for its iron ore, and strong credit market conditions made the move to reprice its debt possible.

The company is also looking to extend the maturity term of its loan but says the move will not increase its overall debt position.

It expects the repricing process to take two weeks.

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