24 March 2017
The Companies Officer
Australian Securities Exchange Ltd Level 40, Central Park
152-158 St Georges Terrace Perth WA 6000
Dear Sir or Madam
Fortescue announces US$1.0 billion repayment of 2019 Term LoanFortescue Metals Group (ASX: FMG, Fortescue) has issued a US$1.0 billion repayment notice for the 2019 Senior Secured Credit Facility ("Term Loan").
In line with Fortescue's previously announced strategy, this US$1.0 billion Term Loan repayment will be made at par on Thursday 30 March 2017 and will generate annual interest savings of approximately US$38 million. Following this repayment, the outstanding balance of the 2019 Term Loan will be reduced to US$976 million.
Chief Executive Officer, Nev Power, said "This US$1.0 billion payment continues our debt reduction strategy lowering our all in cost position and reducing 2019 debt to less than US$1.0 billion.
Productivity and efficiency initiatives have delivered sustained cost reductions and combined with strong market conditions are generating significant free cash flow. We will continue to prioritise free cash flow for debt reduction, investment in our core iron ore business and returns to shareholders."
Fortescue's pro forma maturity profile after repayment of the 2019 Term Loan is set out in the chart below.
5,000 4,500 4,000 3,500US$m
3,000 2,500 2,000 1,500 1,000 500 0 1,000976
$1.0bn Term Loan repayment2,160
478
CY2017 CY2018 CY2019 CY2020 CY2021 CY2022
Term Loan Senior Unsecured Notes Senior Secured Notes Debt RepaymentsYours sincerely
Fortescue Metals Group LtdAlison Terry Company Secretary | |
Media contact: Michael Vaughan E: mediarelations@fmgl.com.au M: +61 422 602 720 | Investor Relations contact: Stuart Gale E: investorrelations@fmgl.com.au |
Fortescue Metals Group Limited | PO Box 6915 |
ABN 57 002 594 872 | East Perth, Western Australia |
Level 2, 87 Adelaide Terrace | P +61 8 6218 8888 |
East Perth, Western Australia 6004 | E fmgl@fmgl.com.au |
Fortescue Metals Group Ltd. published this content on 24 March 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 March 2017 21:54:17 UTC.
Original documenthttp://fmgl.com.au/media/2984/170324_fortescue-announces-us-10-billion-repayment-of-2019-term-loan.pdf
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