SYDNEY May 10 Australian miner Fortescue Metals
Group said on Wednesday it had raised $1.5 billion in a
high-yield bond offering, $500 million more than originally
sought, due to strong investor demand.
The unsecured debt, which will be used to refinance existing
facilities as iron ore prices are falling, was also priced more
favourably than marketing materials had indicated.
"This outcome recognises Fortescue's significant
achievements across all of our operations, including safety
performance, consistent production, sustained productivity and
efficiency gains, together with the continued strength of our
balance sheet," Fortescue Chief Executive Nev Power said.
A $750 million tranche of five-year notes will carry an
annual interest rate of 4.75 percent, less than the estimated 5
to 5.25 percent. A $750 million tranche of seven-year notes was
priced at 5.125 percent.
Fitch Ratings said on Tuesday the notes were expected to
carry a rating of BB+, one notch below the lowest investment
Fortescue Chief Financial Officer Elizabeth Gaines said the
issuance had extended the miner's nearest term maturity to 2022
on improved terms and conditions.
(Reporting by Jamie Freed; Editing by Richard Chang)