Corrs Chambers Westgarth has advised the joint book-running managers J.P. Morgan Securities; Merrill Lynch, Pierce, Fenner & Smith, Inc.; Citigroup Global Markets, Inc.; Credit Suisse Securities; Deutsche Bank Securities, Inc.; RBS Securities, Inc.; and UBS Securities on a US$2.0 billion high yield bond offering by Fortescue Metals Group (FMG).

The $2.0 billion Senior Unsecured Notes were upsized from the initially announced US$1.0 billion. The notes were issued in two tranches: US$1.0 billion 6.000% Senior Notes due 2017 and US$1.0 billion 6.875% Senior Notes due 2022. The terms were consistent with the existing Senior Unsecured Notes on which Corrs also advised.

The net proceeds of the offering will be used by FMG in connection with the expansion of its production capacity to 155Mtpa and the acquisition of related mobile mining equipment.

The Corrs team, led by partners Brad Robinson and Peter Jarosek, was supported by partner Craig Milner, senior associates James McQueen and Simon Mifsud and lawyers Karen Tseu and Tina Latif. The Corrs team worked closely with Simpson Thacher & Bartlett LLP, as New York counsel to the joint book-running managers, to successfully complete the transaction. FMG was advised by Sullivan & Cromwell and Allen & Overy.


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