FMG raises USD 1 billion of senior unsecured notes
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Thursday, 27 Oct 2011
Fortescue Metals Group Limited priced its offering of Senior Unsecured Notes. The offering which was initially launched at USD 1.0 billion was upsized to USD 1.5 billion given strong demand. The Notes are expected to settle on October 28 2011 subject to customary closing conditions. Fortescue intends to use the net proceeds from this offering for the expansion to 155 million tonnes per annum.
The USD 1.5 billion of Notes have terms and conditions consistent with the Unsecured Notes issued by the company in October and December 2010. Details are provided below:
| Principal Amount | USD 1,500 million |
| Interest Rate | 8.25 % per annum |
| Term | 8 years with a non-call period of 4 years |
| Guarantors | Fortescue and each of its existing and future direct and indirect restricted subsidiaries |
| Ranking of the Notes | pari passu with all existing and future senior unsecured indebtedness |
