Fortescue Metals Group has seen its share price rise by up to 17 percent after the Australian miner confirmed it had secured a $4.5 billion credit facility to pay down debts and boost liquidity. What this means is that the company has effectively extended its repayment deadline for its to debts to November 2015.
The financing, underwritten by JP Morgan and Credit Suisse, will be used to pay off Fortescue’s existing debts, estimate to be approximately $3.6 billion, thus leaving it with headroom of some $900 million. “The company has moved quickly to ensure its capital structure can withstand prolonged market volatility,” said chief executive Nev Power.
Founded by billionaire Andrew Forest, the company has also confirmed it remains in talks to sell off some of its assets with strong interest having been expressed by a range of parties. The company however was quick to add that any such deals would only be pursued further if they clearly add shareholder value.
