Fortescue gets early tenders for 20.69% of 9¾% notes in capped offer

By Susanna Moon

Chicago, March 8 – Fortescue Metals Group Ltd.’s Australian wholly owned subsidiary FMG Resources (August 2006) Pty Ltd. said investors had tendered $446,912,000, or 20.69%, of its $2,160,441,000 outstanding 9¾% senior secured notes due 2022 as of the early tender deadline of 5 p.m. ET on March 7.

The company accepted all of the tendered notes for purchase, according to a press release.

The tender offer will continue until 11:59 p.m. ET on March 21.

As announced Feb. 21, FMG is offering to purchase up to $1.4 billion of the notes for a total purchase price of $1,102.50 per $1,000 principal amount.

The total amount includes an early participation payment of $5.00 per $1,000 principal amount.

Holders tendering after the early deadline will receive the tender offer price of $1,097.50 per $1,000 principal amount.

The company also will pay accrued interest up to but excluding the settlement date.

The tender offer has a financing condition.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-2494) is the dealer manager for the tender offer. Ipreo LLC (888 593-9546, fax 888 254-6152, tenderoffer@ipreo.com) is acting as the information agent and depositary.

Fortescue is an iron ore producer based in Perth, Australia.

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