Poor old Fortescue overpaid for its own bonds

Tuesday, 8 December 2015

Remember this crowing a few weeks ago:

Fortescue started taking advantage of this in September, when it bought back $US384 million of debt at a 20 per cent discount, meaning it only had to shell out $US305 million.

The miner was at it again this week, buying back $US439 million of debt for $US338 million (a 23 per cent discount), and $US311 million of other debt for $US280 million ( a discount of 10 per cent).

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.