Fortescue Metals averts disaster with $4.5 bln credit facility
Australian iron ore stalwart Fortescue Metals Group (ASX:FMG) has managed to avert its debt woes by obtaining a fresh USD$4.5 billion credit facility.
Proactive Investors reports that the iron ore player has obtained an underwritten commitment from Credit Suisse and JP Morgan for a Senior Secured Credit Facility of up to USD$4.5 billion.
The facility pushes back the earliest repayment date for any debt to November 2015, with the new funds to be used for the financing of existing bank facilities and the provision of additional liquidity.
Fortescue emerged from a requested trading suspension today and surged 16% by the middle of the morning session.
The company's share price has taken a battering of late alongside other Australian iron ore peers due to rising operating costs and a dive in iron ore spot prices which recently hit a three-month low.
The company's shares fell into a tail spin last week following Fortescue's announcement that it was seeking a 12-month waiver of its debt covenants.