Fortescue postpones $2.5 billion offering of seven-year secured notes

By Paul A. Harris

Portland, Ore., March 17 – Australian iron ore producer Fortescue has postponed its $2.5 billion offering of seven-year senior secured notes, market sources said on Tuesday.

The deal was talked to yield 8% to 8¼% on Monday afternoon.

The notes offering was announced early in the week after Fortescue withdrew its $2.5 billion seven-year term loan from the market.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the joint physical bookrunners.

The issuing entity was to have been FMG Resources Pty Ltd., a direct, wholly owned subsidiary of Fortescue Metals Group Ltd.

The Perth, Australia-based company planned to use the proceeds to fund tender offers for all of its 2017 and 2018 senior notes and a portion of the 2019 senior notes and for general corporate purposes.

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