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Nev Power. Picture: Steve Ferrier/The West Australian.
Nev Power. Picture: Steve Ferrier/The West Australian.

UPDATE 1.25pm: Fortescue Metals Group says the completion of its debt refinancing offers funding flexibility and removes uncertainty.

The iron ore miner announced this morning that lead arrangers Credit Suisse and JP Morgan had completed the distribution process for a new, up-sized $US5 billion senior secured credit facility for the company.

The proceeds will be used to repay the company's Leucadia Notes of $US715 million, refinance all existing bank facilities and provide additional liquidity.

FMG's chief financial officer Stephen Pearce said support from US capital markets had again proven to be exceptionally strong.

"The facility provides funding flexibility to support the company through the commodity cycle and removes uncertainty around our financing arrangements," he said.

"The additional liquidity strengthens our balance sheet and the additional operating cash flows generated from near term production tonnes puts the company in a strong position."

Fortescue chief executive Nev Power said the potential for an early restart of the 40mtpa Kings mine in December using a staged approach that reflected prevailing conditions in the iron ore market was a valuable option for the company.

"Our commitment to ultimately expand (our operations) to 155mtpa and deliver low cost production from the Solomon mining hub remains unchanged," he said.

FMG has felt the squeeze in recent weeks from falling iron ore prices and high debt levels.

Shares in the Andrew Forrest-led miner closed down 13 cents, or 3.38 per cent, at $3.72.

The West Australian

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