Fortescue Metals Group has continued its focus on reducing debt, paying off US$500 million from its 2019 term loan.
It comes a month after the miner issued a US$650 million repayment for the same 2019 secured term loan, and the repayment of US$577 million of notes.
In a similar fashion to the last repayment of the loan, FMG will use accumulated cash, and generate around US$21 million in interest savings annually from the reduction of debt.
The miner now has US$3.676 billion remaining on the credit facility, around US$2.16 billion remaining in senior secured notes maturing in CY2022, and US$478 million remaining in senior unsecured notes maturing in CY2022.
“Cashflow generation from our operational performance and cost reductions have allowed Fortescue to continue to repay debt; this brings total FY16 debt repayments to US$2.9 billion, reducing annual interest expense by US$186 million, “ FMG CFO Stephen Pearce said.
“We remain committed to our debt repayment strategy,” he added.