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RNS Number : 9578I
Rio Tinto PLC
22 June 2017
 

Rio Tinto successfully completes $2.5 billion gross debt reduction

 

23 June 2017

 

Rio Tinto has successfully completed its bond tender and redemption exercises announced on 22 May 2017 and has reduced gross debt by a further $2.5 billion. Since the start of 2016 we have now reduced the nominal value of our outstanding bonds from approximately $21 billion to about $9.5 billion.

 

The Notes purchased by Rio Tinto Finance (USA) plc and Rio Tinto Finance (USA) Limited in the $1.72 billion redemption notices and the $781 million tender offers are detailed below.

Title of Security


Issuer and Offeror


CUSIP/ISIN


Principal Amount

Purchased(1)


Consideration


Mechanism

9.000% Notes due 2019


Rio Tinto Finance (USA) Limited


767201AH9/ US767201AH93


$1,254,306,000  


$1,130.596876 (2)


redemption

3.500% Notes due 2020

 


Rio Tinto Finance (USA) Limited


767201AK2/ US767201AK23


$464,876,000


$1,058.392792 (2)


redemption

4.125% Notes due 2021


Rio Tinto Finance (USA) Limited


767201AN6/ US767201AN61


$144,185,000


$1,080.05 (3)


tender

3.750% Notes due 2021


Rio Tinto Finance (USA) Limited


767201AQ9/ US767201AQ92


$273,929,000


$1,066.93 (3)


tender

3.500% Notes due 2022


Rio Tinto Finance (USA) plc


76720AAC0/ US76720AAC09


$231,615,000


$1,057.76 (3)


tender

2.875% Notes due 2022


Rio Tinto Finance (USA) plc


76720AAF3/ US76720AAF30


$131,089,000


$1,028.77 (3)


tender

(1)     Settlement of 9.000% Notes due 2019 and 3.500% Notes due 2020 was on 21 June 2017. Settlement of 4.125% Notes due 2021, 3.750% Notes due 2021, 3.500% Notes due 2022 and 2.875% Notes due 2022 was on 7 June 2017.

(2)     Per $1,000 principal amount of notes under the redemption notice.

(3)     Per $1,000 principal amount of Securities validly tendered and accepted for purchase.

 

Capitalised terms in this announcement have the same meaning as assigned to them in the Offer to Purchase dated 22 May 2017.

 

The Notes purchased and redeemed have been retired and cancelled and no longer remain outstanding.

 

The early redemption costs are expected to reduce underlying earnings by approximately $180 million and cash flow from operating activities by approximately $260 million in the first half of 2017. These reductions will be offset by savings in future periods.

 

Contacts

 

media.enquiries@riotinto.com

 

www.riotinto.com

 

  Follow @RioTinto on Twitter

 

 

 

Media Relations, EMEA/Americas

Illtud Harri

T +44 20 7781 1152

M +44 7920 503 600

 

David Outhwaite

T +44 20 7781 1623

M +44 7787 597 493

 

David Luff

T +44 20 7781 1177
M +44 7780 226 422

 

Investor Relations, EMEA/Americas

John Smelt

T +44 20 7781 1654

M +44 7879 642 675

 

David Ovington

T +44 20 7781 2051

M +44 7920 010 978

Media Relations, Australia/Asia

Ben Mitchell

T +61 3 9283 3620

M +61 419 850 212

 

Anthony Havers

T +61 8 9425 8557

M +61 459 847 758

 

 

 

 

 

Investor Relations, Australia/Asia

Natalie Worley

T +61 3 9283 3063

M +61 409 210 462

 

Rachel Storrs

T +61 3 9283 3628

M +61 417 401 018

 

Nick Parkinson

T +44 20 7781 1552

M +44 7810 657 556


 

 

Rio Tinto plc

6 St James's Square

London SW1Y 4AD

United Kingdom

 

T +44 20 7781 2000
Registered in England

No. 719885

Rio Tinto Limited

120 Collins Street

Melbourne 3000

Australia

 

T +61 3 9283 3333

Registered in Australia

ABN 96 004 458 404

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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