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RLPC: Fortescue increases refi loan, cuts pricing

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By Caleb Frazier

NEW YORK, Oct 11 (Reuters) - Fortescue Metals , thefourth-largest iron ore producer in the world, reduced pricingand increased the size of its covenant-lite refinancing loan,sources told Thomson Reuters LPC.

The five-year loan was increased by $500 million to $5billion while pricing was cut to LIB+425 with a 1 percent Liborfloor. At launch, the loan was talked at LIB+475 with a 1.25percent Libor floor. An original issue discount of 99 cents onthe dollar remains unchanged.

Joint lead arrangers Credit Suisse and JP Morgan launchedthe loan, which will refinance existing debt via issuer FMGResources, at an October 3 bank meeting.

Recommitments to the loan are due at noon today. Corporatefamily ratings are Ba3/BB-/BB+. Facility ratings areBa1/BB+/BBB-. The loan will benefit from 101 soft callprotection for the first year.

ANZ, Bank of America Merrill Lynch, Deutsche Bank and UBSare co-arrangers on the loan.

(Editing By Jon Methven)

((jonathan.methven@thomsonreuters.com;))

Keywords: FORTESCUE INCREASE