Rio Tinto : successfully completes $2.5 billion gross debt reduction
June 23, 2017 at 06:49 pm EDT
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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
Consideration
Mechanism
9.000% Notes due 2019
Rio Tinto Finance (USA) Limited
767201AH9/ US767201AH93
$1,254,306,000
$1,130.596876
redemption
3.500% Notes due 2020
Rio Tinto Finance (USA) Limited
767201AK2/ US767201AK23
$464,876,000
$1,058.392792
redemption
4.125% Notes due 2021
Rio Tinto Finance (USA) Limited
767201AN6/ US767201AN61
$144,185,000
$1,080.05
tender
3.750% Notes due 2021
Rio Tinto Finance (USA) Limited
767201AQ9/ US767201AQ92
$273,929,000
$1,066.93
tender
3.500% Notes due 2022
Rio Tinto Finance (USA) plc
76720AAC0/ US76720AAC09
$231,615,000
$1,057.76
tender
2.875% Notes due 2022
Rio Tinto Finance (USA) plc
76720AAF3/ US76720AAF30
$131,089,000
$1,028.77
tender
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.
Per $1,000 principal amount of notes under the redemption notice.
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.
Rio Tinto Ltd. published this content on 23 June 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 June 2017 22:49:15 UTC.
Original documenthttp://www.riotinto.com/media/media-releases-237_22511.aspx
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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%).
RIO TINTO GROUP 
