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By Robert Smith LONDON, April 23 (IFR) - A new bond for Fortescue Metals Group has rocketed up more than three points in the secondary market on Thursday, suggesting investors had the Australian iron ore producer over a barrel on pricing. Sole lead JP Morgan priced the US$2.3bn 9.75% senior secured seven-year non-call three deal at 97.608 to yield 10.25% - just a touch inside talk of 10.5%. But the bond has already traded up massively, with two investors seeing it bid above a cash price of 101. Fortescue withdrew a US$2.5bn bond last month after investors' price expectations drifted towards 9% yields. A further crash in iron ore prices put the company on the back foot when it returned to market to get the crucial deal done, however. "They had the last deal done at 9 to 9.25%, but they didn't pull the trigger as they didn't want to pay that much," said one of the investors. "I think it's fair to say that everyone who liked it at 9.25% was very happy to get involved at 10.25%." The new deal means Fortescue has tackled its biggest short-term refinancing needs, giving it some breathing space and reassuring the bond market. The second investor cautioned that a further slump in iron ore prices would quickly erase the early secondary market gains on the new deal, however. (Reporting by Robert Smith, editing by Helene Durand and Julian Banker)
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Fortescue Metals Group
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DEVELOPMENT STAGE |
CODE : FMG.AX |
ISIN : AU000000FMG4 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Fortescue Metals is a iron development stage company based in Australia. Fortescue Metals holds various exploration projects in Australia. Its main assets in development are CHRISTMAS CREEK and NULLAGINE IRON in Australia and its main exploration property is SOLOMON GROUP in Australia. Fortescue Metals is listed in Australia and in Germany. Its market capitalisation is AU$ 55.0 billions as of today (US$ 37.1 billions, € 33.3 billions). Its stock quote reached its lowest recent point on January 29, 2016 at AU$ 1.41, and its highest recent level on September 19, 2024 at AU$ 17.65. Fortescue Metals has 3 113 799 936 shares outstanding. |