Mineral Resources (ASX:MIN) said it has priced $650 million in 6% senior unsecured notes due May 2032 and $650 million in 6.25% senior unsecured notes due May 2034, in an offering to qualified institutional buyers, according to a Tuesday Australian bourse filing.

The company said the settlement is expected to occur in New York on April 29, with interest payable on May 1 and Nov. 1 each year, and the notes are guaranteed by its certain units.

The company will use the proceeds, together with cash on hand, to refinance its existing $625 million 8% senior unsecured notes due November 2027, fully repay the outstanding balance of its iron ore prepayment, and redeem $350 million of its existing $1.1 billion 9.25% senior unsecured notes due October 2028.

The transaction is expected to deliver finance cost savings of AU$48 million per year, decreasing the company's weighted average cost of debt to 7.4% from 8.4% and extending its weighted average tenor to five years from 3.1 years, the filing added.