FMG have announced a US$2.5 billion refinancing plan.
The iron ore miner will launch a senior secured debt issue and a offer to holders of its unsecured notes to tender their existing notes for repurchase, subject to a cap on the 2019 notes.
The miner has invited holders of its 6 per cent senior notes due in 2017, all of the 6.857 per cent senior notes due in 2018, and its 8.25 per cent notes due in 2019 to tender for cash.
It is offering US$1002.50 for its 2017 notes, US$1007.50 for its 2018 notes, and US$970 for its 2019 notes, with an added US$30 early participation payment.
FMG has retained Credit Suisse Securities as the dealer manager for the tender offers.
It also has plans to extend its debt by extending the maturity of its existing US$4.9 billion senior secured credit facility, which means its debt will now mature beyond mid-2021.
"The refinancing will extend Fortescue's debt maturity profile while maintaining flexibility and minimising interest costs," FMG CEO Nev Power said.
"This initiative complements the work done in reducing costs and improving productivity and efficiency across all of Fortescue's operations," he stated.
CFO Stephen Pearce added that the refinancing and liability management exercise is commonplace in the US debt capital market and will be finalised over the next few weeks, subject to satisfactory pricing and terms for the refinancing.