Fortescue guiding $1.5 billion seven-year notes with 9¾% coupon at 96.5 to yield 10½%

By Paul A. Harris

Portland, Ore., April 22 – FMG Resources, a subsidiary of Australia-based Fortescue Metals Group Ltd., has given preliminary guidance for its $1.5 billion offering of senior secured notes due March 1, 2022 (expected ratings Ba1/BB+/BBB-), according to a market source.

The notes are being discussed with a 9¾% coupon at the 96.5 area to yield 10½%.

The deal was the subject of an investor conference call scheduled to get underway late Wednesday morning, with pricing set for Wednesday afternoon.

J.P. Morgan Securities LLC has the books for the Rule 144A and Regulation S for life offering.

The notes come with three years of call protection.

The East Perth, Western Australia-based iron ore mining company plans to use the proceeds to redeem its 6% senior notes due 2017 and its 6 7/8% senior notes due 2018.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.