REG - Rio Tinto - Rio Tinto completes $2.5b gross debt reduction <Origin Href="QuoteRef">RIO.L</Origin>

Rio TintoAnnouncement

23/06/2017 07:05

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 22May 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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