Fortescue Said to Increase Debt-Refinancing Loan to $5 Billion

Fortescue Metals Group Ltd. (FMG), a producer of iron ore, increased the size of a covenant-lite term loan it’s seeking to refinance debt to $5 billion from $4.5 billion, according to a person with knowledge of the transaction.

The five-year debt will now pay interest at 4.25 percentage points more than the London interbank offered rate, down from 4.75 percentage points, said the person, who asked not to be identified because the terms are private. The Libor floor also was reduced to 1 percent from 1.25 percent, according to the person.

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