Fortescue reprices debt facility

Credit Suisse, JP Morgan lower interest margin by 1%, extend maturity.

Fortescue Metals Group's (FMG) senior secured debt facility has been amended and repriced by lead arrangers Credit Suisse and JP Morgan.

In a statement to the Australian Securities Exchange, Fortescue said its previous margin of 4.25% had been reduced by 1% to 3.25%, while the maturity of the facility had been extended to June 30, 2019.

The 1% reduction represents an annual interest saving of approximately $US50 million per annum, Fortescue said.

The 3.25% margin will decrease further as Fortescue reduces leverage through debt reduction. 

The gorup said the repricing would not increase Fortescue’s debt position and that it retained the ability to make early voluntary repayments.

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