From The Australian:
Struggling Australian iron ore miner Fortescue Metals has announced a new $US2.5 billion senior secured debt issue, and will also extend the maturity on its existing $US4.9 billion credit facility beyond 2021.
The move gives strength to Fortescue’s balance sheet after continued weakness in the iron ore price has left investors wary of the company.
“The refinancing will extend Fortescue’s debt maturity profile while maintaining flexibility and minimising interest cost. This initiative complements the great work done in reducing costs and improving productivity and efficiency across all of Fortescue’s operations,” Chief Executive Officer Nev Power said.
So deleveraging has turned into more debt and maturity extension. That’s called battening down the hatches. But at least it’s a nicely timed plunge as interest rate markets offer a little reprieve. Here’s the 2019 bond:
And 2022:
Expect a return to selling in short order as iron ore wilts.
