Macquarie expects the proceeds from the new US1.5bn senior unsecured note issue will be used to repay a -US$750m facility due in 2022. The balance is expected to help fund capex for Iron Bridge while also maintaining a 80% dividend payout ratio.
The Outperform rating and $25.50 target are unchanged.
Sector: Materials.
Target price is $25.50.Current Price is $19.15. Difference: $6.35 – (brackets indicate current price is over target). If FMG meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
