Rio Tinto : completes gross debt reduction programme
April 20, 2018 at 12:57 pm EDT
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Rio Tinto has successfully completed its bond tender and redemption exercises announced on 20 March 2018 and as a result it has reduced gross debt by $1.94 billion equivalent. Since the start of 2016 we have now reduced the nominal value of our outstanding bonds from approximately $21 billion equivalent to about $7.8 billion equivalent.
The notes redeemed by Rio Tinto Finance (USA) plc and Rio Tinto Finance (USA) Limited under the $1.4 billion redemption notices in addition to the the notes purchased by Rio Tinto Finance plc of €432 million under the tender offer amounted to $1.94 billion equivalent are detailed below.
Title of Security
Issuer and Offeror
CUSIP/ISIN
Principal Amount
Redeemed/ Purchased(1)
Consideration
Mechanism
2.000% Notes due May 2020
Rio Tinto Finance plc
XS0863129135
€348,340,000
€1,046.74 (3)
tender
4.125% Notes due 2021
Rio Tinto Finance (USA) Limited
767201AN6/ US767201AN61
$435,794,000
$1,040.64 (2)
redemption
3.750% Notes due 2021
Rio Tinto Finance (USA) Limited
767201AQ9/ US767201AQ92
$353,100,000
$1,027.89 (2)
redemption
3.500% Notes due 2022
Rio Tinto Finance (USA) plc
76720AAC0/ US76720AAC09
$228,661,000
$ 1,024.90 (2)
redemption
2.875% Notes due 2022
Rio Tinto Finance (USA) plc
76720AAF3/ US76720AAF30
$382,553,000
$1,001.15 (2)
redemption
2.875% Notes due Dec 2024
Rio Tinto Finance plc
XS0863127279
€83,300,000
€1,152.03 (3)
tender
(1) Settlement of 2.000% Notes due 2020 and 2.875% Notes due 2024 was on 29 March 2018. 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 19 April 2018.
(2) Per $1,000 principal amount of notes under the redemption notice.
(3) Per €1,000 principal amount of notes validly tendered and accepted for purchase.
Capitalised terms in this announcement have the same meaning as assigned to them in the Tender Offer Memorandum dated 20 March 2018. The Notes purchased and redeemed have been cancelled.
The early redemption costs are expected to reduce earnings before tax by approximately $90 million and cash flow from operating activities by approximately $80 million in the first half of 2018. These reductions will be offset by savings in future periods.
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Rio Tinto plc published this content on 20 April 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 20 April 2018 16:56:03 UTC
Rio Tinto plc is one of the world's leaders in mining research, prospecting and operating. Net sales break down by family of products as follows:
- iron ore (59%): 283.2 Mt produced in 2022;
- aluminum, alumina and bauxite (24.9%): 54.6 Mt bauxite, 7.5 Mt alumina and 3 Mt aluminum produced;
- copper (5.8%) : 521.1 Kt produced;
- industrial minerals (4.8%): titanium dioxide pigments (1,200 Kt produced), borates (532 Kt produced) and salts (5.7 Mt produced);
- diamonds (1.5%) : 4.7 million carats produced;
- gold (1%) : 235,000 ounces produced;
- other (3%): uranium, silver, zinc and molybdenum.
Net sales are distributed geographically as follows: the United Kingdom (0.3%), Europe (6.5%), China (54.3%), Japan (7.4%), Asia (7.1%), the United States (15.9%), Canada (3.1%), Australia (1.9%) and other (3.5%).