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
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.
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Very good news.
better luck next time shorters..ouch
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’.
Short Credit Suisse and JPMorgan then?
Ah, the sweet irony of Credit Suisse (home of China uber bears) participating!
When you owe them a million; they have you by the balls. When you owe them a billion; you’ve got them by the balls?
=shorting CB’s globally.
“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?
Have to say I’m surprised, but well done Twiggy.
Never underestimate the Twiggster. He has form in this area and an idiot he is not. Anaconda taught him a lot of lessons. The choice of his creditors being the major one. The composition of the FMG board should be a guide to FMG’s credit strategy as well.
Fair enough. I wonder what the strings are in the deal. JPM and co would have to go for the jugular wouldn’t they?
More info from FTA: http://ftalphaville.ft.com/blog/2012/09/18/1164511/forescued-metals-group/
Still no real details.
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!
“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?!?
please.
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.
Exactly someones pubes will be getting tweaked by this deal.
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
And twiggy’s div might be back next yr!,,,,and bigger!,,
Key thing now will be to “watch the senior executives”.