Fortescue Metals plans to pay down $650 million of term loan debt

By Sara Rosenberg

New York, May 4 – Fortescue Metals Group issued a $650 million repayment notice for its 2019 senior secured term loan, according to a news release.

The paydown will be made at par on May 16.

Funds for the repayment will come from cash on hand.

Last week, the company initiated the repayment of $577 million senior unsecured notes.

“We are committed to ongoing debt reduction and have accelerated the repayment of the term loan and notes on the back of strong cash flows from sustainable operational efficiencies and cost reductions,” said Nev Power, chief executive officer, in the release.

“Our ongoing strategy of cash accumulation for debt repayment, together with consideration of alternative refinancing options, will further strengthen our balance sheet and maximize shareholder value,” added Stephen Pearce, chief financial officer, in the release.

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

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