Fortescue Races Iron Ore Drop to Cut Debt Cost: Australia Credit
This article is for subscribers only.
Fortescue Metals Group Ltd. is racing both a forecast drop in iron ore prices and the tapering of U.S. stimulus as it seeks to reduce costs of the biggest debt load among junk-rated miners.
Australia’s third-biggest iron ore exporter wants to shave about 50 basis points from interest payments on a $5 billion loan it borrowed in the U.S. last year after prices for the commodity plunged, said a person familiar with the matter. Fortescue also has $2.64 billion of bonds it can repay immediately, the company highlighted in an Oct. 17 report.