Fortescue Metals , the fourth-largest iron ore producer in the world, reduced pricing and increased the size of its covenant-lite refinancing loan, sources told Thomson Reuters LPC.
The five-year loan was increased by $500 million to $5 billion while pricing was cut to LIB+425 with a 1 percent Libor floor. At launch, the loan was talked at LIB+475 with a 1.25 percent Libor floor. An original issue discount of 99 cents on the dollar remains unchanged.
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Joint lead arrangers Credit Suisse and JP Morgan launched the loan, which will refinance existing debt via issuer FMG Resources, at an October 3 bank meeting.
Recommitments to the loan are due at noon today. Corporate family ratings are Ba3/BB-/BB+. Facility ratings are Ba1/BB+/BBB-. The loan will benefit from 101 soft call protection for the first year.
ANZ, Bank of America Merrill Lynch, Deutsche Bank and UBS are co-arrangers on the loan.
(Editing By Jon Methven)