Fortescue Metals offers to purchase 4 ¾% senior notes due 2022

By Taylor Fox

New York, March 18 – Fortescue Metals Group Ltd. wholly owned subsidiary FMG Resources (August 2006) Pty. Ltd. is offering holders of certain of its debt securities to tender to sell in exchange for cash any and all of its $750 million outstanding 4¾% senior notes due 2022 (Cusip: 30251GAU1), according to a news release.

Holders who tender notes prior to the expiration time will receive $1,047 per $1,000 of notes, plus interest.

The offer is subject to various conditions, including a condition that the company complete an offering of senior notes providing proceeds that are sufficient to pay the total consideration and accrued interest for all the tendered notes, plus all fees and expenses in connection with the tender offer.

The offer will expire at 5 p.m. ET March 24.

The settlement date is expected to be March 25.

The guaranteed delivery date is 5 p.m. ET March 26.

The settlement date for notes accepted for purchase delivered pursuant to the guaranteed delivery procedures is expected to be March 29.

J.P. Morgan Securities LLC (866 834-4087, 212 834-4087) is the dealer manager and D.F. King & Co. (866 796-7179, 22 709-3328; fmg@dfking.com) is the information agent and depositary.

Fortescue Metals is a Perth, Australia-based iron ore company.

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