Fortescue to pay down debt by $925m
Fortescue has continued its push to slash debt during a period of relative stability in iron ore markets.
Iron ore miner Fortescue Metals Group has continued its push to slash debt during a period of relative stability in iron ore markets.
The Andrew Forrest-chaired group (FMG) said today it would pay back a further $US700 million ($925m) of its 2019 senior secured credit facility.
The partial term loan repayment adds to the $US2.9 billion the group paid off last financial year and will result in annual interest savings of around $US26m.
Its repayments in fiscal 2016 saved approximately $US186m in annual interest expenses.
“We will continue to apply our free cash flow to repay debt, lowering our gearing and strengthening our balance sheet,” Fortescue finance chief Stephen Pearce said.
The activity is a far cry from 2012 when the group faced intense pressure as iron ore prices tumbled, just as it was ramping up production after a debt-fuelled expansion push.