Bloomberg News

Fortescue Said to Increase Debt-Refinancing Loan to $5 Billion

October 11, 2012

Fortescue Metals Group Ltd. (FMG), a producer of iron ore, increased the size of a covenant-lite term loan it’s seeking to refinance debt to $5 billion from $4.5 billion, according to a person with knowledge of the transaction.

The five-year debt will now pay interest at 4.25 percentage points more than the London interbank offered rate, down from 4.75 percentage points, said the person, who asked not to be identified because the terms are private. The Libor floor also was reduced to 1 percent from 1.25 percent, according to the person.

To contact the reporter on this story: Michael Amato in New York at

To contact the editor responsible for this story: Chapin Wright at

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