Simpson Thacher Represents Initial Purchasers in US$600 Million Senior Notes Offering by Fortescue
09.16.19
This is only gets display when printing
Simpson Thacher represented the initial purchasers, led by J.P. Morgan Securities LLC, in connection with a 144A/Regulation S offering of US$600 million aggregate principal amount of 4.5% Senior Notes due 2027 by FMG Resources (August 2006) Pty Ltd, an Australian corporation (“FMG”) and a direct wholly owned subsidiary of Fortescue Metals Group Ltd., an Australian corporation (“Fortescue”). The notes are guaranteed by Fortescue. The deal closed on September 16, 2019. Since 2011, Simpson Thacher has represented the initial purchasers in almost $8 billion of debt issuances by FMG. The 4.5% coupon achieved in this issuance was the lowest interest rate in FMG’s history for a debt security.
FMG intends to use the net proceeds from the offering to repay a portion of its syndicated term loan.
Fortescue is engaged in the production and export of iron ore in the Pilbara region of Western Australia. Fortescue is the third largest iron ore producer in Australia and the world’s fourth largest exporter into the seaborne iron ore market. Fortescue is listed on the Australian Securities Exchange.
The Simpson Thacher team included David Azarkh, Teresa Chen, Crystal Oparaeke and Matt Drucker (Capital Markets); Stefan Golubovic (Tax); Timothy Mulvihill and Noreen Lavan (Environmental); Larry Moss and Joo Hyun Lee (Executive Compensation and Employee Benefits); and Jennie Getsin (Blue Sky).