Firm leads on US$2.3bn note issue success

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Allen & Overy have acted as Australian counsel on Fortescue Metals Group’s fundraising in the US bonds market.
The 144A offering of Senior Secured Notes was completed on 27 April. The proceeds of the notes issue will be used to redeem outstanding Senior Unsecured Notes, swap and to otherwise retire outstanding indebtedness maturing in 2019.
The firm has been working with Fortescue since 2006, including acting on its US$5bn senior secured term loan B facility in 2012. 
Perth partner Peter Wilkes led the advisory team on this recent note issue. In his view, the transaction demonstrates the continued support of Western Australia’s mining sector by US capital markets.
“We have a strong relationship with Fortescue Metals Group, having acted on all of their financing transactions since 2006,” said Wilkes.  “The transaction is significant as it strengthens Fortescue’s financial position by extending its debt maturity profile and provides the company with considerable flexibility in coming years.”
Sullivan & Cromwell LLP acted as US counsel to Fortescue on the note issue.