Fortescue Metals to repay $1 billion of term loan borrowings

By Wendy Van Sickle

Columbus, Ohio, March 24 – Fortescue Metals Group issued a $1 billion repayment notice for its 2019 senior secured term loan, according to a news release.

The repayment will be made at par on Thursday and will result in about $38 million of annual interest expense savings.

After the repayment, the outstanding balance of the term loan will be $976 million.

“Productivity and efficiency initiatives have delivered sustained cost reductions and combined with strong market conditions are generating significant free cash flow,” chief executive officer Nev Power said in the release.

“We will continue to prioritize free cash flow for debt reduction, investment in our core iron ore business and returns to shareholders.”

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

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