PERTH (miningweekly.com) – Iron-ore major Fortescue Metals this week completed a $750-million debt tender for 2019 and 2022 notes.
The company told shareholders that the purchase of the notes, which would settle at the end of November, had resulted in Fortescue recognising a $124-million pre-tax gain and a saving of some $56-million in annual interest.
In the 2016 financial year so far, Fortescue had repurchased some $1.134-billion of debt, generating pre-tax gains of $192-million and yearly interest savings of about $88-million.
CFO Stephen Pearce said that the process had been well received by the US capital market, which had continued to strongly support Fortescue.
“Moving forward, we remain committed to using our accumulated cash balances for further debt reduction,” Pearce said.
“We continue to focus on activities which strengthen Fortescue’s competitive position in the global iron-ore market. Our operational performance and ongoing commitment to savings has enabled Fortescue to continue its debt repayment programme while maintaining strong cash balances,” CEO Nev Power added.
Edited by: Creamer Media Reporter
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