Fortescue Metals Group shares have slumped after the iron ore miner abandoned plans to refinance $US2.5 billion ($A3.28 billion) worth of debt.
Fortescue said it decided not to pursue a planned senior secured note offering and refinancing because of the unfavourable terms and conditions currently available on US credit markets.
Shares in the mining company closed 10.5 cents, or 5.33 per cent, lower at $1.865.
Analysts said Fortescue had failed to attract suitable interest from investors and would likely approach Australian banks for more favourable terms.
Fat Prophets analyst David Lennox said it appeared that Fortescue would approach a major Australian bank or syndicate of banks to do the refinancing.
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"They've found the bond market too expensive," he said.
A report in the Australian Financial Review said the company would have had to pay an interest rate of nine per cent to attract investors to the note offering, adding that the company's bankers had hoped to achieve an interest rate "in the high seven per cent area".
