MELBOURNE, March 24 Fortescue Metals Group Ltd
, the world's No.4 iron ore miner, will pay down $1
billion in a term loan on March 30, it said on Friday, as it
looks to continue its cost-cutting drive.
The repayment will save it about $38 million in interest
costs and reduce its debt burden to $3.6 billion, with about a
quarter of that due in 2019.
The rapid reduction in debt paves the way for the company to
step up payouts to shareholders, with analysts forecasting a
dividend of 37 cents a share for the year to June 2017, more
than double last year's level, according to Thomson Reuters
"We will continue to prioritise free cash flow for debt
reduction, investment in our core iron ore business and returns
to shareholders," Chief Executive Officer Nev Power said in a
(Reporting by Sonali Paul; Editing by Lisa Shumaker)