Fortescue gets its rescue

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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.

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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.