FMG Resources restructures $800 million notes offering, carves out five-year tranche, sets talk

By Paul A. Harris

St. Louis, Dec. 9 - FMG Resources Pty. Ltd. restructured its $800 million notes offering and set price talk on Thursday, according to a market source.

A previously announced tranche of seven-year senior notes (B1/B/B+) is expected to be downsized to $400 million from $800 million. The seven-year notes, which come with three years of call protection, are talked at the 6 7/8% area.

Meanwhile FMG added a tranche of five-year notes, which is expected to be sized at $400 million. The five-year notes, which come with two years of call protection, are talked with a 6½% area yield.

The notes are expected to price on Friday.

JPMorgan has the books for the Rule 144A offering.

Proceeds will be used to finance expansion activities and for other general corporate purposes.

The prospective issuer is an Australia-based producer and sea-borne trader of iron ore.

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