Fortescue Metals Group completes $1.4 billion syndicated term loan

By Sarah Lizee

Olympia, Wash., Feb. 21 – Fortescue Metals Group Ltd. closed a $1.4 billion syndicated term loan facility with participation by Chinese, Australian and European financial institutions, according to a press release.

The term loan matures in four years and has a one-year extension option.

“This financing transaction builds and broadens Fortescue’s highly valued relationships with China,” chief financial officer Ian Wells said in the release.

“It represents another milestone in the execution of our capital management strategy, increases capital flexibility and further lowers Fortescue’s cost of capital.”

“The support of the Chinese, Australian and European banks enables Fortescue to diversify its capital structure on globally competitive financing terms,” chief executive officer Elizabeth Gaines said.

Proceeds will be used to redeem a portion of Fortescue’s senior secured notes due 2022 through a tender offer and/or redemption.

Fortescue is a Perth, Australia-based producer of iron ore.

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