Australia's Fortescue reaches $715 mln debt deal with Leucadia
SYDNEY, Sept 20
SYDNEY, Sept 20 (Reuters) - Australia's Fortescue Metals Group said it had reached a $715 million deal with U.S. investment firm Leucadia National Corp to repay loan notes, the latest move by the world's No.4 iron ore producer to restructure its hefty debt load.
Leucadia purchased $100 million of unsecured notes in 2006. The notes were to pay Leucadia 4 percent of the revenue from two of Fortescue's mines until maturity in August 2019 and were valued in Fortescue's book at $897 million, Fortescue said.
"This agreement significantly reduces the overall cost of debt for the company," Fortescue CEO Nev Power said in a statement on Thursday.
Earlier this week, Fortescue -- one-third owned by billionaire founder Andrew "Twiggy" Forrest -- lined up $4.5 billion in debt and said it was in talks to sell stakes in some of its assets to shore up funding to cope with a slump in iron ore prices that had hammered its shares.
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