Fortescue Metals Group (ASX: FMG) has received strong support from the international funding markets and has now raised US$2.0 billion of Senior Unsecured Notes.
Fortescue Metals has today priced its previously announced US$1.0 billion offering of Senior Unsecured Notes, which was upsized to US$2.0 billion. The settlement date is expected to be on or about 19 March 2012 - subject to customary closing conditions.
The funds will then be allocated to progress the 155 million tonne per annum expansion, along with the acquisition of related mobile mining equipment.
The US$2.0 billion of Senior Unsecured Notes are in two tranches.
Guarantors: Fortescue and each of its existing and future direct and indirect restricted subsidiaries. Ranking of Notes: Pari passu with all existing and future senior unsecured indebtedness.
Tranche 1
- US$1,000 million
- 6.00 % per annum
- 5 years with a non-call period of 3 years
Tranche 2
- US$1,000 million
- 6.875 % per annum
- 10 years with a non-call period of 5 years