LONDON, 22-Mar-2018 — /EuropaWire/ — Rio Tinto will use some of its surplus liquidity to further reduce gross debt, today launching a bond purchase and redemption plan for up to $2.25 billion.
Under the plan, Rio Tinto has issued redemption notices for approximately $1.4 billion of four series of its US dollar-denominated notes maturing in 2021 and 2022 and commenced invitations to holders outside the United States to sell up to approximately $850 million equivalent of two series of its Euro-denominated notes maturing in 2020 and 2024.
Today’s announcement is part of the Rio Tinto Group’s ongoing capital management plan and follows the successful completion of a series of $10 billion US dollar-denominated note redemptions and repurchases in 2016 and 2017.
1. Redemption of Bonds
Rio Tinto today issued notices of redemption for all of its 4.125 per cent Notes due May 2021 and 3.750 per cent Notes due September 2021 issued by Rio Tinto Finance (USA) Limited. Rio Tinto today has also issued notices of redemption for all of its 3.500 per cent Notes due March 2022 and 2.875 per cent Notes due August 2022 issued by Rio Tinto Finance (USA) plc. All of these notes are guaranteed by Rio Tinto plc and Rio Tinto Limited. Approximately $1.4 billion in aggregate principal amount is outstanding across the series of notes to be redeemed. The redemption date will be 19 April 2018. For additional information, noteholders may call the trustee and paying agent, The Bank of New York Mellon, at +1-212-815-5811.
2. Cash Tender Offer
Rio Tinto Finance plc (the “Company”) is making invitations to holders outside the United States in respect of its €750,000,000 2.000 per cent. Instruments due 11 May 2020 and its €500,000,000 2.875 per cent. Instruments due 11 December 2024 (together, the “Notes”) both guaranteed by Rio Tinto plc and Rio Tinto Limited, to sell up to approximately $850 million equivalent in aggregate principal amount of the Notes (the “Tender Offer”). The Tender Offer is not being made, and will not be made, directly or indirectly, in or into, or by use of the mail of, or by any means or instrumentality of interstate or foreign commerce of or of any facilities of a national securities exchange of, the United States. Any purported tender of Notes in the Tender Offer made by a person located or resident in the United States will be invalid and will not be accepted.
This announcement does not constitute a solicitation of an offer to tender any Notes. Noteholders outside the United States which are eligible to participate in the Tender Offer are advised to read carefully the Tender Offer Memorandum for full details of and information on the procedures for participating in the Tender Offers.
LEI: 213800YOEO5OQ72G2R82 Classification: 2.2. Inside information disclosed under article 17 of the Market Abuse Regulation
SOURCE: Rio Tinto