Fortescue Metals Group Ltd. launched and priced an offering of US$500 million of 5.125% senior unsecured notes due 2023.
The notes will have a five-year noncall term. The offering is expected to be settled by March 15.
The company will use the proceeds from the offering, along with the recently secured US$1.40 billion term loan facility, to redeem the 9.75% of US$2.16 billion senior secured notes due 2020. The balance will be redeemed from cash.
The refinancing and debt repayment will lower Fortescue's annual borrowing costs by approximately US$130 million.
