Fortescue Metals has issued a US$650 million (A$869.5 million) repayment notice for the 2019 senior secured term loan. This is in addition to the repayment of US$577 (A$774) million senior unsecured notes initiated last week.
Fortescue CEO, Nev Power said the A$869.5 million term loan repayment will be made at par from accumulated cash on Monday, May 16, generating interest savings of approximately A$37million per annum.
“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,” Mr Power added.
The company’s Chief Financial Officer, Stephen Pearce said the A$869.5 million, in conjunction with last week’s A$774 million, brings Fortescue’s total FY16 debt repayments to approximately A$3 billion.
“Our ongoing strategy of cash acquisition for debt repayment, together with consideration of alternative re-financing options, will further strengthen our balance sheet and maximize shareholder value,” Mr Pearce concluded.