Fortescue gets its rescue

From the AFR:

Fortescue Metals Group has secured a commitment for a new debt facility of up to $US4.5 billion underwritten by Credit Suisse and JPMorgan that it will use to refinance its existing facilities and provide it with additional liquidity.

…Fortescue said the earliest repayment date for any of its debt is now November 2015, which is well after the December 2013 date at which $US1.5 billion was due to mature previously.

No conditions either, apparently. Nice banks.

This is good news for the economy. It should slow the iron ore bust and prevent contagion spreading into the other majors too quickly.

David Llewellyn-Smith
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    • Anyone who was short had been short for a long time and likely made a packet on this.

      I’m not sure you really understand the business of short selling if you think those who jump on the bandwagon at the last minute are ‘shorters’.

  1. Aussie Contrarian

    “It should slow the iron ore bust”

    Not so sure there is a bust to slow any more. Aren’t iron ore prices back above 100 and rising?

  2. But what was the facility fee? I recall Alan Bond putting together similar Lazarus like deals 25 years ago, and he paid double-fees for the privilege….and we can now see where that got everyone involved!

  3. “No conditions either, apparently. Nice banks.”
    You are kidding aren’t you HnH.
    aren’t you?
    firstly banks are never nice ..and when stockmarket volatility infects the share price they turn wimpy ..never nice.
    no conditions?!?
    conditions for a facility like this will be as long as your arm .
    shades of the ” binding agreement “announcement which has Twiggy in the high Court at the moment.

  4. I wonder the rate
    Libor plus 6%maybe?
    Not bad if your JP’s etc and likely borrowing for say 1-2%?
    So maybe making say 7% plus pa on say 4.5 bill! Deferred I know

    Plus a sign on! nice way to lock in a bonus for the bankers also…..and pass the parcel.

    Who knows but l think the numbers likely work for the bankers