Fortescue Metals Group (ASX: FMG) is an iron ore-focused company operating in Western Australia's Pilbara region.
Fortescue Metals Group (ASX: FMG) has silenced the naysayers for now with an underwritten commitment for a Senior Secured Credit Facility of up to US$4.5 billion.
The import of which is that the earliest repayment date for any debt has been pushed out to November 2015.
The company will come out of a requested trading halt this morning. The share price is likely to open at around $3.45, up from previous close of $2.99 before the trading halt.
This Facility will be used to refinance all existing bank facilities and provide Fortescue with additional liquidity.
Credit Suisse and JP Morgan have together signed a full underwriting commitment for the Facility, providing funding certainty to Fortescue.
The Facility removes financial maintenance covenants which applied under previous facilities.
The key terms of the Facility include a Principal amount US$4.5 billion and Maturity of 5 years.
Fortescue said in a statement that strong interest has been expressed by a range of parties interested in partnering with Fortescue in certain of its assets.
Fortescue is currently evaluating these approaches. Transactions of this nature are not required under Fortescue's new debt facilities and will only be pursued if they clearly add shareholder value.
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