23 Jun 2017 07:00
Rio Tinto successfully completes $2.5 billion gross debt reduction
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23 June 2017
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Rio Tinto has successfully completed its bond tender and redemption exercises announced on 22Â 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.
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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 Â | 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.
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Capitalised terms in this announcement have the same meaning as assigned to them in the Offer to Purchase dated 22 May 2017.
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The Notes purchased and redeemed have been retired and cancelled and no longer remain outstanding.
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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.
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Contacts
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media.enquiries@riotinto.com
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www.riotinto.com
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Follow @RioTinto on Twitter
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Media Relations, EMEA/AmericasIlltud Harri T +44 20 7781 1152 M +44 7920 503 600 Â David Outhwaite T +44 20 7781 1623 M +44 7787 597 493 Â David Luff T +44 20 7781 1177M +44 7780 226 422 Â Investor Relations, EMEA/AmericasJohn Smelt T +44 20 7781 1654 M +44 7879 642 675 Â David Ovington T +44 20 7781 2051 M +44 7920 010 978 | Media Relations, Australia/AsiaBen Mitchell T +61 3 9283 3620 M +61 419 850 212 Â Anthony Havers T +61 8 9425 8557 M +61 459 847 758 Â Â Â Â Â Investor Relations, Australia/AsiaNatalie Worley T +61 3 9283 3063 M +61 409 210 462 Â Rachel Storrs T +61 3 9283 3628 M +61 417 401 018 Â |
Nick Parkinson T +44 20 7781 1552 M +44 7810 657 556 | |
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Rio Tinto plc6 St James's Square London SW1Y 4AD United Kingdom  T +44 20 7781 2000Registered in England No. 719885 | Rio Tinto Limited120 Collins Street Melbourne 3000 Australia  T +61 3 9283 3333 Registered in Australia ABN 96 004 458 404 |
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