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RIO TINTO LIMITED — Capital/Financing Update 2017
Jun 22, 2017
65705_rns_2017-06-22_36458667-4e76-45cd-8993-635029d11324.pdf
Capital/Financing Update
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Media release
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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 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 9.000% Notes due 2019 3.500% Notes due 2020 4.125% Notes due 2021 3.750% Notes due 2021 3.500% Notes due 2022 2.875% Notes due 2022 |
Issuer and Offeror Rio Tinto Finance (USA) Limited Rio Tinto Finance (USA) Limited Rio Tinto Finance (USA) Limited Rio Tinto Finance (USA) Limited Rio Tinto Finance (USA) plc Rio Tinto Finance (USA) plc |
CUSIP/ISIN | Principal Amount Purchased(1) |
Consideration | Mechanism |
|---|---|---|---|---|---|
| 767201AH9/ US767201AH93 767201AK2/ US767201AK23 767201AN6/ US767201AN61 767201AQ9/ US767201AQ92 76720AAC0/ US76720AAC09 76720AAF3/ US76720AAF30 |
$1,254,306,000 $464,876,000 $144,185,000 $273,929,000 $231,615,000 $131,089,000 |
$1,130.596876(2) $1,058.392792(2) $1,080.05(3) $1,066.93(3) $1,057.76(3) $1,028.77(3) |
redemption redemption tender tender tender 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.
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Contacts
www.riotinto.com
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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
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
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
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
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